Basic, Supplement, & Roth

[ciscokidyo]

Company matches 6% of contributions. There is Pre-tax  and after tax Basic, Supplement, Roth. I don't know whats the best choice. Do you split, confused?

[Larry Starr]

1 hour ago, ciscokidyo said:

Company matches 6% of contributions. There is Pre-tax  and after tax Basic, Supplement, Roth. I don't know whats the best choice. Do you split, confused?

I can't say your question is any less confusing. What exactly is going on and what is your issue?  Please flesh out the issue if you want a responsible answer.

[QDROphile]

You seem to saying that your plan has 4 types of "employee" contribution that will be matched by the employer:

1.  "Pre-tax" elective deferrals;

2.  After-tax employee contributions ( "Basic"?);

3.  Supplement  -- you will have to explain that, the word does not conform to usual notions of employee contribution;  I suspect "Supplement" is an employer contribution and not subject to matching.

4. Roth contributions.

You seem to be asking which one, or combination, of the "employee contributions" you should choose, given that they are all matched equally by the employer.  If that is the question, you cannot get much of an answer here.  The choice between "pre-tax" deferrals and after-tax (both traditional after tax contributions and Roth contributions) depends very much on individual circumstances (e.g. income and wealth, use of Roth IRAs, section 529 accounts, and HSAs), assumptions about future effective investment earnings rates and after-retirement effective tax rates, and plan differences among the options, such as eligibility for loans.

A common conclusion is that, other things being equal, Roth contributions  are preferable to traditional after tax contributions because the earnings on traditional after tax contributions (the increase in value of the after tax account over the basis) are subject to taxation at ordinary rates while the earnings on Roth contributions are not subject to federal income tax if distributed in a qualifying distribution.  But that conclusion is a generality.

You really do need to explain better.  I hope my attempt at unpacking your post gives you some framework or ideas for better communicating your circumstances (what the plan options are) and your question about what to do or choose.  I repeat that you are not going to get any specific answer that is backed by high confidence.  An entire sub-industry exists to help individuals with the choice between "pre-tax" and after-tax elective contributions.  The optimal choice may also change with time and circumstances.

 

[401king]

Go with Pre-Tax for now and get the match. It's the simplest one and most 'portable' when you leave the company. Then, re-evaluate your choice when you have more time to educate yourself on the differences (which may involve a conversation with the Plan's service provider). 

[chc93]

Shouldn't the plan document tell you which employee contributions are matched?  Or are you designing a new plan now.