A Roth 401(k) is among the retirement plans offered by employers, which make contributions with money withheld from participating employees' wages. Whereas a traditional 401(k) is funded with pretax dollars, a Roth 401(k)'s contributions are made in after-tax dollars. If you have the latter, knowing how to calculate the withholding helps you to determine whether you were correctly paid.

#### Step 1

Determine your gross income for the pay period. This is your entire pay before deductions. For example, your annual salary is $43,000 and you are paid biweekly. Divide $43,000 by 26 to arrive at biweekly gross earnings of $1,653.85.

#### Step 2

Identify the percentage of wages or flat amount that you have instructed your employer to withhold for your Roth 401(k) contribution.

#### Step 3

Subtract your Roth 401(k) contribution from your gross income. For example, your contribution is 5 percent. Multiply $1653.85 by 0.05 to arrive at $82.69.

#### Tip

- Once you arrive at the maximum that the IRS allows you to contribute toward a Roth 401(k) for the year, your employer stops the withholding and resumes it at the start of the next year.

#### References

#### Photo Credits

- Comstock/Comstock/Getty Images

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