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<blockquote data-quote="Gabba" data-source="post: 5001772" data-attributes="member: 58591">no it&#039;s not.&nbsp; yes a roth 401k is made with after tax contributions.&nbsp; however there is separate thing called &quot;After Tax 401k&quot;&nbsp; which doesn&#039;t count towards the traditional/roth yearly contribution cap of $19,500.&nbsp; it has a contribution cap of like $54,000 which you&#039;re never going to max out as a UPS driver.&nbsp;&nbsp; the prudential 401k plan allows 5% of gross pay as contributions to AfterTax401k.so you contribute to it with after tax money, and it&#039;s a little funny how it works on the back end.&nbsp; when you quit or retire and roll it over into a vanguard/fidelity/schwab account, (and you should asap)&nbsp; your cumulative contribution total goes into a rothIRA while any amount over that goes into a traditional IRA.&nbsp; if you just leave it in the plan, then it behaves the same way on withdrawl, but you should roll it over asap because the returns on the roth money then stay in the roth column.&nbsp; while if you left it in the plan only the contribution total would be treated as roth.if you&#039;re trying to max your roth column, i&#039;d strenuously recommend making Aftertax401k contributions.</blockquote>

[QUOTE="Gabba, post: 5001772, member: 58591"] no it's not. yes a roth 401k is made with after tax contributions. however there is separate thing called "After Tax 401k" which doesn't count towards the traditional/roth yearly contribution cap of $19,500. it has a contribution cap of like $54,000 which you're never going to max out as a UPS driver. the prudential 401k plan allows 5% of gross pay as contributions to AfterTax401k. so you contribute to it with after tax money, and it's a little funny how it works on the back end. when you quit or retire and roll it over into a vanguard/fidelity/schwab account, (and you should asap) your cumulative contribution total goes into a rothIRA while any amount over that goes into a traditional IRA. if you just leave it in the plan, then it behaves the same way on withdrawl, but you should roll it over asap because the returns on the roth money then stay in the roth column. while if you left it in the plan only the contribution total would be treated as roth. if you're trying to max your roth column, i'd strenuously recommend making Aftertax401k contributions. [/QUOTE]

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