What Is 401(k) on a Pay Stub? Pre-Tax, Roth, and Contribution Limits
A 401(k) line on a pay stub can mean several different things. `401K EE` usually refers to the employee's contribution, while `401K ER` or `ER MATCH` usually refers to an employer-funded contribution. `ROTH 401K` generally means an employee Roth deferral, and `401K LOAN` can mean a repayment of money previously borrowed from the plan.
These lines do not all affect taxable wages, net pay, YTD totals or annual contribution limits in the same way.
Payroll codes are not standardized. EE commonly means employee and ER commonly means employer, but your payroll provider can use different abbreviations. Check your payroll legend, benefit election or Summary Plan Description before relying on the code alone.
What Do 401K EE and 401K ER Mean on a Pay Stub?
401K EE usually means an employee-funded 401(k) contribution. The amount normally reduces the employee's take-home pay. If it is a traditional elective deferral, it generally reduces current federal income-tax wages but not Social Security or Medicare wages.
401K ER usually means an employer-funded contribution or match. It normally should not come out of the employee's take-home pay. Some employers display the amount on every pay stub; others report employer contributions differently or later.
| Possible label | Usually means | Reduces employee net pay? | What to verify |
|---|---|---|---|
| 401K EE | Employee traditional 401(k) contribution | Usually yes | Employee election, current amount and YTD |
| ROTH 401K / ROTH EE | Employee designated Roth contribution | Usually yes | Roth election and YTD amount |
| 401K ER / ER MATCH | Employer contribution or match | Normally no | Employer match formula and plan account |
| 401K AFTER TAX | Possible voluntary non-Roth after-tax contribution | Usually yes | Plan design; do not assume this means Roth |
| 401K LOAN | Repayment of a participant loan | Usually yes | Loan schedule and payroll deduction amount |
What Does a 401(k) Look Like on a Pay Stub?
Most payroll systems place employee retirement contributions in a deductions section and may show employer contributions in a separate employer-benefits or company-contributions section.
The exact layout varies. A simplified fictional pay stub might look like this:
The section matters as much as the label. An employer match listed under “Employer Contributions” should not be interpreted as money withheld from the employee merely because it appears near deductions.
Which 401(k) Line Are You Looking At?
| Line type | Federal income-tax treatment now | FICA wages | Counts toward employee $24,500 deferral limit? |
|---|---|---|---|
| Traditional 401(k) employee deferral | Generally excluded from current federal income-tax wages | Still included | Yes |
| Roth 401(k) employee deferral | Included in current federal taxable wages | Included | Yes |
| Employer match | Normally no current payroll deduction from employee | Normally no employee payroll effect | No |
| Voluntary non-Roth after-tax contribution | After-tax | Included | Not part of the employee elective-deferral limit, but other plan limits apply |
| 401(k) loan repayment | Generally does not reduce current taxable wages | Generally no wage reduction | No — loan repayments are not plan contributions |
Traditional 401(k) vs Roth 401(k) vs Employer Match
The three most common retirement-related pay-stub lines affect the paycheck differently.
| 401(k) line | Reduces cash pay? | Reduces current federal income-tax wages? | Reduces Social Security / Medicare wages? |
|---|---|---|---|
| Traditional employee deferral | Yes | Generally yes | No |
| Roth employee deferral | Yes | No | No |
| Employer match | Normally no | Normally no employee payroll deduction | Normally no employee payroll deduction |
A traditional contribution is commonly called “pre-tax,” but that shorthand refers primarily to federal income-tax treatment. Traditional 401(k) employee deferrals generally remain part of Social Security and Medicare wages.
For broader deduction classification, see Pre-Tax vs Post-Tax Deductions.
How a Traditional or Roth 401(k) Changes Your Paycheck
Suppose gross pay for the period is $2,500 and the employee contributes $150.
| Pay-stub measure | Traditional 401(k) | Roth 401(k) |
|---|---|---|
| Gross pay | $2,500 | $2,500 |
| Employee contribution | $150 | $150 |
| Federal taxable wage before other adjustments | $2,350 | $2,500 |
| Social Security wage before other adjustments | $2,500 | $2,500 |
| Medicare wage before other adjustments | $2,500 | $2,500 |
Both traditional and Roth contributions remove money from cash pay. But the traditional contribution generally reduces the wages used for current federal income-tax withholding, while the Roth contribution does not. With the same gross pay and contribution amount, the Roth version can therefore produce lower take-home pay than the traditional version, all other payroll inputs being equal.
For a deeper explanation of Box 1 versus FICA wage bases, see Taxable Wages on a Pay Stub.
What Does 401(k) YTD Mean on a Pay Stub?
401(k) YTD means the amount payroll has recorded year to date for that particular retirement line. It normally runs from the beginning of the calendar year through the current paycheck.
Different lines can have separate YTD totals:
- traditional employee contributions;
- Roth employee contributions;
- employer match;
- after-tax contributions;
- loan repayments.
Do not add every retirement-looking YTD line and compare the result with the $24,500 employee limit. Employer contributions and loan repayments are different from employee elective deferrals.
Simple YTD check
If the previous pay stub shows:
$1,800 YTD
and the current employee contribution is:
$150
the new YTD would normally be:
A refund, correction, reclassification or payroll adjustment can change that pattern, but payroll should be able to explain why.
For general YTD mechanics, see Current vs. YTD on a Pay Stub.
401(k) Pay-Stub Checker
Use this calculator to understand the payroll effect of traditional and Roth employee deferrals and to estimate how much of the 2026 employee elective-deferral limit remains.
401(k) Contribution Limits for 2026
| 2026 limit | Amount | What it means |
|---|---|---|
| Basic employee elective deferral | $24,500 | Combined traditional and designated Roth employee elective deferrals, subject to plan rules. |
| Standard catch-up age 50+ | $8,000 | Additional eligible catch-up amount, except when the higher age 60–63 catch-up applies. |
| Age 60–63 catch-up | $11,250 | Higher catch-up for eligible participants who are age 60, 61, 62 or 63 at year end. |
| Total defined-contribution annual additions | $72,000 | Generally includes applicable employee and employer contributions, excluding eligible catch-up contributions. |
2026 Roth catch-up rule: Current IRS participant guidance says that beginning in 2026, certain participants whose prior-year wages from the plan sponsor exceeded the applicable $150,000 threshold generally must make catch-up contributions on a Roth basis when the plan offers the relevant Roth/catch-up features. Plan administration can be technical, so confirm the actual 2026 implementation with the plan administrator.
Changed Jobs? Combine Your Employee Deferrals
The basic employee elective-deferral limit generally follows the employee across employers during the year.
Example:
- Employer A traditional + Roth YTD: $14,000
- Employer B traditional + Roth YTD: $7,500
- Combined employee elective deferrals: $21,500
Separate employers may not know how much you contributed through another employer's plan. Keep the final pay stub from each job and monitor the combined employee-deferral total yourself.
Does Employer 401(k) Match Show on a Pay Stub?
It can, but not every employer displays matching contributions in the same way or at the same time.
Possible labels include:
- 401K ER;
- ER MATCH;
- 401K MATCH;
- COMPANY MATCH;
- provider-specific retirement codes.
An employer match normally should not reduce the employee's take-home pay. It is funded by the employer rather than withheld from employee cash wages.
Employer match and vesting are different questions
A pay stub may show that an employer contribution was credited or reported. That does not necessarily mean every employer-contributed dollar is already fully vested.
Vesting depends on the plan's rules. Check the Summary Plan Description or plan account for the vested balance.
Employer Roth contributions
Some plans can permit certain nonforfeitable employer matching or nonelective contributions to be designated Roth. These should not be confused with an employee Roth elective deferral.
Employee designated Roth 401(k) elective deferrals are generally reported on Form W-2 with Code AA. Current IRS instructions require designated Roth employer matching and nonelective contributions to be reported differently, generally through Form 1099-R for the year allocated.
What Is a 401(k) Loan Repayment on a Pay Stub?
If your plan permits participant loans, repayment may occur automatically through payroll withholding.
Common labels can include:
- 401K LOAN;
- 401K LN;
- RET LOAN;
- LOAN PMT.
A 401(k) loan repayment is not a new plan contribution. It is repayment of money previously borrowed from the account, including principal and interest under the loan terms. IRS guidance specifically states that loan repayments are not plan contributions.
That means a normal loan repayment does not use the employee's $24,500 elective-deferral limit.
On payroll, a loan repayment is generally handled from after-tax cash and does not reduce current federal taxable wages the way a traditional elective deferral does. Confirm the exact payroll treatment and loan schedule with the plan administrator.
If payroll stops a required loan deduction, do not assume the missed payment is harmless. Plan loans have repayment requirements, and a default can create tax consequences.
Roth 401(k) vs Voluntary After-Tax 401(k)
“After-tax” does not always mean “Roth.”
| Contribution | Tax treatment now | Part of employee elective-deferral limit? | Typical year-end reporting |
|---|---|---|---|
| Traditional 401(k) | Generally pre-tax for federal income-tax wages | Yes | W-2 Code D |
| Roth 401(k) | After-tax | Yes | W-2 Code AA |
| Voluntary non-Roth after-tax contribution | After-tax | Not the same employee elective-deferral limit; other plan limits apply | Not reported as Code AA merely because it is after-tax |
If a pay stub only says `AFTER TAX 401K`, check the plan document before assuming it is Roth.
How 401(k) Pay-Stub Amounts Connect to Form W-2
| W-2 item | Traditional 401(k) | Roth 401(k) |
|---|---|---|
| Box 1 | Employee elective deferral generally excluded | Contribution remains included |
| Box 3 | Contribution remains included, subject to Social Security wage-base rules | Contribution remains included |
| Box 5 | Contribution remains included | Contribution remains included |
| Box 12 | Code D | Code AA |
Use the official W-2 for tax filing. The final pay stub is most useful as a reconciliation tool.
For the full annual calculation, see Calculate W-2 Wages From a Pay Stub.
Why Did My 401(k) Deduction Change?
A different contribution amount does not automatically mean payroll made an error.
Common reasons include:
- you changed your election;
- an automatic contribution increase took effect;
- a bonus or commission used a different eligible-compensation rule;
- catch-up contributions began;
- you approached or reached an annual limit;
- your Roth/traditional split changed;
- a payroll correction was processed;
- a loan repayment started or ended;
- your employer's match or true-up was reported separately.
Audit the changed amount
- Check the election percentage or dollar amount.
- Identify which earnings were eligible for the deduction.
- Recalculate the expected amount.
- Compare current and YTD totals.
- Check whether the line is employee, employer, Roth, after-tax or loan-related.
What If 401(k) Was Deducted but Is Missing From the Plan Account?
A pay stub proves that payroll recorded a deduction. It does not, by itself, prove that the contribution has already posted to the investment account.
The seven-business-day rule is not a universal waiting period. Participant contributions generally must be forwarded as soon as they can reasonably be separated from the employer's general assets. Qualifying plans with fewer than 100 participants can use the federal seven-business-day safe harbor.
Records to save
- original pay stub;
- benefit election;
- plan-account transaction history;
- payroll correspondence;
- any correction confirmation.
Suggested payroll request: “My pay stub dated [date] shows a [traditional/Roth] 401(k) employee deduction of $[amount] and YTD of $[amount]. Please confirm the compensation base used, the date the contribution was transmitted to the plan, any employer-match status, and the expected posting or correction date.”
60-Second 401(k) Pay-Stub Audit
Frequently Asked Questions
401K EE usually means an employee-funded 401(k) contribution. EE is common payroll shorthand for employee. If the contribution is traditional, it generally reduces current federal income-tax wages but not Social Security or Medicare wages.
401K ER usually refers to an employer-funded 401(k) contribution or match. ER commonly means employer. It normally should not reduce the employee's take-home pay.
Usually, employee payroll contributions appear in the deductions section under labels such as 401K, 401K EE, RET or ROTH 401K. Employer match may appear separately or may not be displayed on every employer's pay stub.
A traditional 401(k) employee contribution is generally pre-tax for current federal income-tax wages, but it still remains subject to Social Security and Medicare taxes. A designated Roth 401(k) contribution is after-tax.
No. Gross pay records earnings before deductions. A traditional 401(k) can reduce certain taxable-wage figures and both traditional and Roth employee contributions reduce take-home cash, but they do not erase the underlying earnings from gross pay.
It is the year-to-date total payroll has recorded for that particular 401(k)-related line. Employee traditional, Roth, employer match and loan repayment amounts can have separate YTD totals.
Normally no. Employer match is funded by the employer, not withheld from employee take-home pay. Confirm the line is marked ER, employer or company contribution rather than EE.
No. IRS guidance states that loan repayments are not plan contributions. A normal loan repayment therefore does not use the employee elective-deferral limit.
The basic employee elective-deferral limit is $24,500 for 2026. Eligible participants age 50 or older may have catch-up room, including the higher $11,250 catch-up for eligible participants ages 60 through 63.
Payroll processing and plan-account posting are separate steps. Confirm the deduction on the stub, check the plan account, then ask payroll or the plan administrator when the contribution was transmitted. Repeated unexplained delays deserve follow-up.
Preparing a Legitimate Current Payroll Record?
After confirming the real wages, taxes and authorized deductions, employers and authorized payroll users can use ePaystubs to organize accurate current payroll information into a pay stub. A generator cannot replace or alter an employer-issued historical payroll record.
Create a Pay StubOfficial Sources Used for This Update
- IRS — 401(k) and Profit-Sharing Plan Contribution Limits
- IRS — 2026 401(k) Limit Announcement
- IRS — Catch-Up Contributions
- IRS Topic 424 — 401(k) Plans
- IRS — 2026 Forms W-2 and W-3 Instructions
- IRS — 2026 Form 1099-R Instructions
- IRS — Retirement Plan Loan FAQs
- U.S. Department of Labor — Retirement Plans and ERISA FAQs
Source review date: August 31, 2026.
