Roth Retirement Plans - 401(k), 403(b), 457
Explore Roth retirement plans and learn how to manage them effectively in Check Console.
Intended audience
Partner team members who support any aspect of their payroll product with Check.
Overview
This article explains post-tax Roth retirement plans (Roth 401(k), Roth 403(b), and Roth 457) and shows how to manage them in Check Console.
Partner differences
What are Roth retirement plans?
A Roth plan is an Employer-sponsored retirement savings plan that lets Employees contribute after-tax dollars. Because taxes are paid up front, qualified distributions in retirement are generally tax-free. Plan types vary by organization:
- Roth 401(k) – general companies
- Roth 403(b) – certain tax-exempt organizations
- Roth 457 – government and some non-profit employers
Taxation and reporting
Tax | Taxable | Exempt |
Federal income tax | ✓ | |
Social Security (FICA) | ✓ | |
Medicare | ✓ | |
Federal unemployment | ✓ | |
State withholding | ✓ | |
State unemployment | ✓ |
Form W-2 reporting
- Roth 401(k) – Box 12 AA; check Retirement plan in Box 13
- Roth 403(b) – Box 12 EE; check Retirement plan in Box 13
- Roth 457 – Box 12 BB; check Retirement plan in Box 13
Annual limits and catch-up contributions (2025)
The IRS caps total Roth contributions (Employee + Employer) each calendar year. Employees age 50+ may also make an extra catch-up contribution. An additional overall annual compensation limit controls how much income can be matched.
2025 annual limit | Catch-up (age 50+) | Compensation limit (401(k) only) |
$23,500 | $7,500 | $350,000 |
Check automatically enforces both the annual and catch-up limits based on each Employee’s birth date in Console. irs.govirs.gov
Retirement matches
A retirement match occurs when the Employer contributes to the Employee’s account, usually as a percentage of the Employee’s own contribution.
Managing Roth plans in Console
Add the benefit at the company level
- Open the company and select Benefits.
- Select Add benefit.
- Complete the fields:
- Type – Roth 401(k), Roth 403(b), or Roth 457
- Description – Appears on pay stubs and reports.
- Period – None = every pay period; Monthly = monthly max.
- Leave contribution amounts/percentages blank unless they apply to all Employees.
- Start date – First date the plan is available.
- Select Save.
Assign the benefit to an Employee
- Open the Employee and select Benefits.
- Select Add benefit → Assign existing company benefit.
- Review or edit:
- Company contribution amount / percentage – Employer match (if any).
- Employee contribution amount / percentage – Employee deduction per pay period.
- Effective start – First payroll that includes the deduction.
- Effective end – Leave blank to continue indefinitely.
- Select Save.
FAQs
How do I enter a tiered match (for example, “Employer matches 50 % of Employee contributions up to 6 %”)?
Check does not currently support multi-tier formulas. Instead, enter the calculated single percentage as the Employer contribution:
- If the Employee contributes 5 %, enter 2.5 % as the Employer match.
- If the Employee contributes 7 %, enter 3 % as the Employer match.
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Intended Audience: Partner team members supporting any aspect of their payroll product with Check.
Overview
This article details post-tax Roth retirement plans supported by Check and how these benefits are managed in Check's Console.
Note: Partners offer different product capabilities. While you can create and update benefits in Check's Console, your company's payroll product might also provide this functionality. Consult your company for guidance on best practices.
What are traditional retirement plans?
Employer-sponsored retirement savings plan that allows employees to make contributions with after-tax dollars. The type of Roth retirement plans offered by an employer depends on the type of business where the employee works.
- Roth 401(k) Plan: General employers
- Roth 403(b) Plan: Certain tax-exempt organizations
- Roth 457 Plan: Government and some non-profit employees
Taxation & Reporting
Roth contributions are made with after-tax dollars, so they do not provide immediate tax benefits like traditional retirement plans. By paying taxes up front, employees avoid paying taxes when they receive plan distributions.
Tax | Taxable | Exempt |
Federal Income Tax | x | |
Social Security/FICA | x | |
Medicare | x | |
Federal Unemployment | x | |
State Withholding | x | |
State Unemployment | x |
For W2 purposes:
- Roth 401(k): Box 12AA, box 13 checked for retirement plan
- Roth 403(b): Box 12EE, box 13 checked for retirement plan
- Roth 457: Box 12BB, box 13 checked for retirement plan
Annual Limits & Catch Up Contributions
There is a maximum amount of money an individual can contribute to their Roth 401(k), 403(b), and 457 retirement savings account in a given year. This limit is set by the IRS and is subject to change each year.
A catch-up contribution allows individuals aged 50 or older to contribute extra money to retirement savings accounts beyond the standard limits, helping them boost their savings as they near retirement.
There is also an annual compensation limit which applies to traditional retirement matches. Once the employee exceeds this amount in the calendar year, they are no longer eligible for employer funded retirement matches.
Check will automatically deduct up to the catch up limit for every eligible employee. It’s important to have accurate birth dates in Console.
Below are the limits for 2024:
Annual Limit | Annual Catch-up 50+ | Annual Compensation Limit (401k only) |
$23,000 | $7,500 | $345,000 |
Retirement Matches
A retirement match is when an employer contributes money to an employee's retirement account, typically based on the employee's own contributions. It's an incentive for employees to save for retirement, with the employer matching a percentage of the employee's contributions.
Using Console
The benefit type selected in Console will determine how the benefit is taxed and reported.
In Console, it is recommended that benefits are first added to the company and then attached to employees.
Company Level Benefits:
- Select the company and click on Benefits.
- Select the option to Add Benefit.
- Input the requested fields to ensure complete benefit setup.
- Type - Select benefit type: Roth 401(k), Roth 403(b), or Roth 457
- Description - The description entered here will appear on reporting and check stubs.
- Period (none = every pay period; monthly = max amount that can come out per month)
- Company Period Amount - This is usually left blank because it is typically set at the employee level.
- Employee Period Amount - This is usually left blank because it is typically set at the employee level.
- Start Date - Enter the earliest date that the plan should be available to employees
- Click Save.
Applying the benefit to the employee:
- Select the employee and click on Benefits.
- Select the option to Add Benefit.
- Select Assign existing company benefit.
- Input the requested fields to ensure complete benefit setup.
- Type - Select the benefit type: Roth 401(k), Roth 403(b), or Roth 457
- Description - The will auto populate.
- Period - This will auto populate.
- Company Contribution Amount - (less common) Enter the amount the company is contributing to the employee per period; this is the employer match
- Employee Contribution Amount - (less common) Enter the amount the employee should have deducted from their paycheck per period
- Company Contribution Percentage - Enter the percentage the company is contributing to the employee per period
- Employee Contribution Percentage - Enter the percentage the employee should have deducted from their paycheck per period, this is the employer match
- Effective Start - Date that benefit amount should begin calculating
- Effective End - Date benefits should stop calculating; best practice is to leave this field blank
- Click Save.
FAQs
How do I entered a tiered benefit match (ex: employer matches 50% of contribution up to 6%)?
Check does not currently supported tiered matches, however, you could enter the calculated percentage in the employer contribution. Example: if the employee was contributing 5%, the employer contribution would be 2.5%. If they are contributing 7%, the employer contribution would be 3%.
Recordings
Last updated on May 31, 2024