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 | Earnings withdrawn prior to age 59½ are subject to a 10% excise tax.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 (2025) | $23,500 (combined with Roth contributions) | 10% of pay (coordinates with other contributions and match to not exceed $70,000 in 2025) | $23,500 (combined with before-tax contributions) |
| Catch-Up Contribution Limit (age 50 or older) | $7,500 (combined with Roth catch-up) | N/A | $7,500 (combined with before-tax catch-up) |
| Catch-Up Contribution Limit (ages 60-63) | Can increase catchup to 150% of the $7,500 limit. | N/A | Can increase catchup to 150% of the $7,500 limit. |