Available investments in 401(k)

Is it typical for participants in one 401(k) plan with pre-tax and Roth to have the same investment elections or is it typical for a participant to choose an investment election for pre-tax and a separate election for Roth?

Thanks!

If a plan permits a participant (or other directing individual) to specify different investment directions for non-Roth and Roth subaccounts, some will use that opportunity.

Some advisors and authors suggest ordering one’s investment allocations to take advantage of the different tax treatments.

Here’s my related question:  Which recordkeepers and service arrangements facilitate separate investment directions for non-Roth and Roth amounts?

The ability to have different investment directions for non-Roth and Roth and/or different sources is baked into most recordkeeping systems.  After all, once it's coded, it shouldn't be a problem.

The challenge and difficult conversations come up when the participant decides to invest the assets differently and then wants to split the assets up between non-Roth and Roth to move forward.  Of course, they always want the best performer to be in the Roth side of the equation.  

So to answer your questions above.... maybe typical, maybe not.

I've worked at a company that opened the sources to different investing.  I'm currently at a place that does the one investment strategy for all sources.

Mary I believe it’s far more typical to have the same array of investment choices for each type of account  IMHO.

Mary do you mean that for a plan with both pre-tax and Roth deferrals both sources have the participant invested in the same funds?  OR that they can invest, say, into funds A & B for pre-tax and funds C & D for Roth?  Or are you asking if it is ok for the plan to offer funds A, B, C, D for pre-tax and maybe funds A, B, E & F for Roth?

1 hour ago, BG5150 said:

OR that they can invest, say, into funds A & B for pre-tax and funds C & D for Roth?

That's how I read it.  I've never seen it on a platform.

Could be done with brokerage accounts by opening different accounts.  

I've seen on a platform that you can invest different sources into different investments if you wanted to.  Like put your deferrals into the life cycle fund but invest match into something more aggressive.

But I've never seen a different set of investments offered from one source to another.  Like funds A, B, C & D allowed only for pre-tax and funds D, E, F & G available only for Roth and maybe funds H, I , J & K for match.