For example, you have $1000 gross paycheck – you withold 3% for regular 401k, and 3% for roth 401k to be deducted. Say for example taxes are $250. So, for the regular 401k the employer would withhold $30 …so after taxes and regualr 401k, the net woudl be $720. Does the Roth 401k calculate based off of the $720, or $750, or $1000?
The $1000. It’s 3% of gross pay for each.
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$30 would be put into the Traditional 401 (k), reducing taxable income to $970. Less your example of $250 taxes you have a net of $720. Then the 3% for the Roth is taken out or $21.60 thus giving you a net paycheck of $698.40.
So to answer directly your XX% is taken out of your after tax amount.
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The contribution to the traditional 401(k) is pre-tax but the contribution to the Roth 401(k) is post-tax. So your tax withholdings will be be on $970.
I hope that answers your question.
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