Can’t you contribute more to a Roth 401k than a traditional 401k? : personalfinance


I understand that the max limit is $19,500. But for a Roth 401k, I guess the max is $19,500 after tax dollars, while for a traditional 401k, the max is $19,500 pre tax dollars.

So if you’re maxing the Roth 401k and (for example) you have a 22% tax rate, doesn’t that mean you are investing $25,000 of pre tax dollars? Meaning that the Roth 401k lets you invest much more (especially if you’re in a higher tax bracket) than a traditional 401k.

Am I correct? Or am I missing something?



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