Compare 401(k) Contributions

Your Account — Your Choice

The BMC 401(k) Plan allows you to make tax-advantaged contributions three different ways—to a before-tax account, a Roth 401(k) account or to an after-tax account. If you are wondering which contribution type is better for you—tax-deferred savings now (through the before-tax contributions), tax-free in the future (through the Roth feature) or defer taxes on earnings on after-tax money—look at the chart below. You can go to Fidelity NetBenefits® for more information on all of these options. You may also want to consult with a personal tax advisor about the path that might be best for you.

BEFORE-TAX CONTRIBUTIONS
AFTER-TAX CONTRIBUTIONS
ROTH CONTRIBUTIONS
Tax Treatment of Contributions Contributions reduce taxable income. Contributions are deducted after taxes and therefore do not reduce current taxable income. Contributions are deducted after taxes and therefore do not reduce current taxable income.
Tax Treatment of Earnings Earnings grow tax-deferred until taken as a distribution. Earnings grow tax-deferred until taken as a distribution. Earnings grow tax-deferred and are not taxed at distribution if taken after 59 1/2 and at least 5 years has passed since your first year of Roth 401(k) contributions.
Tax Treatment of Distributions, If Not Rolled Over Distributions are fully taxable at the time of withdrawal. Distributions of the after-tax contributions are not taxable; however, the earnings on the contributions are taxable at the time of withdrawal. Distributions are not taxable as long as you are at least 59½ years old and it has been at least 5 years since your first year of Roth 401(k) contributions. Company match and associated earnings are taxed.
Early Withdrawal Penalties Distributions taken before age of 59½ are subject to a 10% tax penalty unless you terminate service after attainment of age 55. Earnings withdrawn prior to age 59½ are subject to a 10% excise tax. Distributions of Roth earnings taken before age 59½, or with less than 5 years from the first contribution, are subject to at 10% tax penalty.
In-Service Withdrawal In-service withdrawal options are only a loan or hardship withdrawal prior to age 59½. After-tax contributions and earnings may be taken as an in-service withdrawal. In-service withdrawal options are only a loan or hardship withdrawal prior to age 59½.
Contribution Limit (2019) $19,000 (combined with Roth contributions) 10% of pay (coordinates with other contributions and match to not exceed $56,000 in 2019) $19,000 (combined with before-tax contributions)
Catch-Up Contribution Limit (age 50 or older) $6,000 (combined with Roth catch-up) N/A $6,000 (combined with before-tax catch-up)