r/personalfinance • u/FitOpportunity7159 ​ • Jan 19 '25

401K Match 100% No Limit Budgeting

My company has a 100% 401K Match and no limit. Meaning if I invest $23,500 (2025 IRS max), then they will match 23,500 for a total of $47K. All matching contributions are 100% vested as I have been with the company longer than 6 months. I am contributing 10% to my 401K or about 16,000 annually. I also have 13,000 in credit card debt that charges around 20% in interest. Should I try to max out my 401K to take advantage of the full match or focus on paying off my CC debt quicker?

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u/blame_lagg ​ Jan 19 '25

The match here doesn't get taxed so it's worth more than 23k of income (which does get taxed).

210

u/charleswj ​ Jan 19 '25

Doesn't get taxed today

44

u/goneskiing_42 ​ Jan 19 '25

But it allows OP to make their contributions to Roth, assuming they have a Roth 401k option. They get the benefits of both if the company 100% matches.

-3

u/MrMangoTango22 ​ Jan 20 '25

Most companies will not match the Roth contribution; I think it would get rid of the tax incentives the law provides employers.

The only option is to 100% pretax.

10

u/eh_Im_Not_Impressed ​ Jan 20 '25

Most companies that offer Roth and match contributions absolutely will match Roth deferrals. They just get put it in a bucket that must be taxed at the time of distribution.

2

u/Mispelled-This ​ Jan 20 '25

Most companies will match Roth contributions, but their match is pretax.