Can I split match between Roth and traditional?

Yes \u2014 election per contribution period.

Does Roth match count toward $23,500 limit?

No \u2014 separate from employee elective deferral.

Yes \u2014 same vesting schedule as traditional match.

Roth match: no tax. Traditional match: ordinary income at withdrawal.

Roth IRA conversion later?

Roth 401(k) rolls to Roth IRA tax-free.

SECURE Act 2.0 Roth Match

SECURE 2.0: employer match can now be Roth (post-tax). Employee chooses each contribution. Roth match grows tax-free vs pre-tax traditional.

Annual Match Amount ($)

Years to Retirement

Current Tax Bracket %

Retirement Bracket %

Annual Growth %

Roth Match Net

—

Trad Match Net

—

Difference

—

Winner

—

Match amount	—
Years	—
Current bracket	—
Retirement bracket	—
Tax now (Roth)	—
Roth FV	—
Traditional FV	—
Trad tax at retire	—
Roth net	—
Trad net	—
Advantage	—
Winner	—

SECURE Act 2.0 (2022) allows employer 401(k) matches to be Roth (post-tax) instead of just traditional (pre-tax). Major change — employees can now choose to pay tax on match now in exchange for tax-free growth and withdrawals. Best for low current bracket / expected high retirement bracket.

Old vs New Rules

Pre-2023: ALL employer matches were pre-tax (traditional). Employee couldn't choose. Now SECURE 2.0 lets employee opt for Roth match on the contribution. Tax paid by employee now (added to W-2 income); match grows tax-free.

When Roth Match Wins

Currently low income (under 22% bracket). Long time horizon (15+ years to retirement). Expect higher income in retirement (high earner trajectory). Already maxing pre-tax options. Want tax-free legacy for heirs.

When Traditional Match Wins

Currently high income (32-37% bracket). Expecting lower retirement income (typical retirement). Need cash flow now (Roth requires extra W-2 tax payment from existing pay). Want immediate tax deduction.

Last updated May 2026. Sources: IRS SECURE Act 2.0.