The Roth 401k Employer Match Tax Trap You Need to Know

Episode 28 of Retirement Planning with Fexingo uncovers a hidden tax rule that could cost you thousands: employer matching contributions to a Roth 401k are always pre-tax, meaning you'll owe taxes on that 'free money' in retirement. Lucas and Luna break down the IRS rule, walk through a concrete example with a 35-year-old earning $120,000, and explain why this creates a tax liability at withdrawal that most savers never see coming. They also discuss a simple strategy: max out the Roth 401k up to the match, then redirect additional savings to a Roth IRA. No fluff, just the numbers you need to avoid a nasty surprise in your 70s. Plus, a brief word on listener support—if today's tip was worth a coffee to you, that's the link. #Roth401k #EmployerMatch #TaxTrap #RetirementPlanning #401k #RothIRA #TaxLiability #IRS #MatchingContribution #PreTax #AfterTax #WithdrawalTax #Fiduciary #RetirementTaxes #SavingsStrategy #Finance #FexingoBusiness #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo