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My company added a Roth 401(k) as an alternative to a traditional 401(k). They also match my contributions (100% of my contributions, up to 6% of my salary). According to the plan literature, the company match is considered pre-tax contributions, and will be taxed (along with any gains from those contributions) when I eventually take a distribution. Obviously, my contributions would be post-tax; they and their gains will not be taxed at distributions (as long as I meed the time and age criteria).

I'm a little confused about how this mix of pre-tax and post-tax contributions work. Suppose the company match ends up being 40% of the total dollars going into the account (my contributions are the other 60%). Does that mean that when I take distributions, 40% of that money will be taxable and 60% will be tax-free?

How would this mix of pre-tax and post-tax contributions affect a rollover to a Roth IRA? Would I end up paying taxes on 40% of the amount rolled over? Or could I roll over 40% (the pre-tax portion) to a traditional IRA and 60% (the post-tax portion) to a Roth IRA without paying any additional taxes?

(In case it's important, I've been contributing to a traditional 401(k) for 20+ years, so I've got a sizable chunk already sitting waiting to be taxed later.)

Thanks for your insights,

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