How Does Roth 401K Affect Taxes? 
That is a great question ! When you make contributions to your Roth IRA , those contributions are made after you are taxed on them . When you make contributions to your companies 401k , for example , those contributions are subtracted from your income before the remainder of the income is taxed . Since Uncle Sam did n't get his slice of tax on your 401k money , he takes it when you make your withdrawals . In your Roth 's case , you 've already paid him , so your Roth withdrawals are not taxed . So your contributions , -LRB- up to $ 5500 , $ 6500 if you are 50 + -RRB- are made after tax -LRB- and can not be deducted on your income tax forms -RRB- , and your withdrawals tax free , as long as they meet the 5 year , or 59 1/2 year old rule . If you withdraw more than what you 've paid in before that time , the gains are taxable , so be careful . I hope that clears it up for you , if not , please feel free to contact me , and I 'll walk you through it . Thanks for asking ! 