Anyone eligible for the Baker Hughes 401(k) Plan can make pre-tax, regular after-tax, or Roth contributions, up to the allowable IRS limits.

Click here to view a Roth education video, and access additional information available online in your 401(k) plan account.

All 401(k) Plan participants are eligible to make Roth contributions, but must elect to make Roth contributions – they are not automatic.

All 401(k) contributions will be taxed at some point. Pre-tax contributions are taxed at the time you withdraw your savings, and after-tax and Roth contributions are taxed at the time you make the contributions. If you believe that at the time you plan to withdraw your contributions you will be at a higher tax bracket than you are currently, now may be a better time to pay taxes on your contributions. Or if you are unsure about future tax rates, contributing both pre-tax and after-tax (Roth or regular) can diversify your tax situation at retirement.

You may elect any combination of pre-tax, regular after-tax, or Roth contributions up to 50% of pay, as long as your total contributions don’t go over the annual limits set by the IRS. And remember, the company match is made every pay period, so be sure to calculate your total contributions to ensure you are making 401(k) contributions each pay period.

Both elections allow you to save on an after-tax basis, and when you withdraw your savings they will not be taxed. Earnings from investments are handled differently, however. Earnings from Roth contributions remain tax-free, and earnings from regular after-tax contributions are taxed upon withdrawal.

Under current tax laws, neither your Roth contributions nor the income on those contributions will be subject to federal income tax when you receive them if the distribution of your Roth contributions (including earnings thereon) is made:

1. On or after the later of the date you attain age 59½, die or become disabled; and

2. After the completion of the five-taxable-year period beginning on the earlier of (a) the first day of the first taxable year in which you first made a Roth contribution to the Plan or (b) if you made a rollover contribution to the Plan from a designated Roth account previously established for you under another retirement plan, the first taxable year for which you made a Roth contribution to such plan (a “Qualified Roth Distribution”).

The company will make matching contributions on pre-tax, regular after-tax, and Roth contributions.

No. Company contributions have not yet been taxed, so they are pre-tax contributions that will be taxed at the time of distribution.

You can accomplish all savings elections, including Roth elections, changes to investments, or beneficiary changes online or by talking to a Baker Hughes benefits representative Monday through Friday from 7:00 a.m. to 7:00 p.m. CT at 1-866-244-3539.