Know the Types

From pre-tax to Roth after-tax to catch-up, retirement plans offer different types of contributions. We spell them out for you below.

 

Types of Contributions

Pre-Tax

Pre-tax contributions come out of your paycheck before income taxes are withheld, so you lower your taxes every pay period. You pay taxes on these contributions and earnings later when you withdraw them from the plan.

Roth After-Tax

With a Roth after-tax account, your contributions come out of your paycheck after income taxes are withheld. So you're paying your taxes up front. At retirement, qualified distributions come out tax free. A qualified distribution means you have your Roth after-tax contributions account open for at least 5 years and you receive your distribution after age 59½ or due to death or disability.

Catch-Up Contributions

Catch-up contributions are designed to help you increase your savings as you get closer to retirement. If you’ll be age 50 or older during the calendar year, you can make an additional contribution to your retirement plan account.

What's Right for Me?

You can use these rules of thumb to help you pick the right contribution type(s) for you.

  • The younger you are and the lower your tax bracket, the more beneficial Roth after-tax contributions could be for you.

  • If you think your tax bracket will be lower in retirement, making pre-tax contributions today may make more sense.

  • If you think your tax bracket will be higher in retirement, making Roth after-tax contributions today may benefit you.

  • For pre-tax contributions, distribution income is included in the Social Security taxation calculation. For Roth after-tax contributions, it's not included.

  • High earners who can't contribute to a Roth IRA can make Roth 401(k) contributions.

How Much You Can Save

IRS rules limit how much you can save in any retirement plan, including the Conduent Savings Plan. For 2025:

  • You can save up to $23,500. This limit includes pre-tax contributions and Roth after-tax contributions.

  • If you’ll be age 50 or older during the year, you can make an additional catch-up contribution of up to $7,500.

  • The IRS overall limit for tax-deferred plans (including after-tax contributions) is $70,000. This limit includes your pre-tax and/or Roth after-tax contributions up to $23,500, plus any employer contributions. Catch-up contributions are not included.

  • Highly compensated employees (HCEs) may contribute up to 6% to the Conduent Savings Plan. For 2025, an HCE is any individual who earned $155,000 or more at Conduent during 2024. Earnings are calculated using:

    • Earnings reported in Box 1 of your 2024 W-2

    • 401(k) deferrals

    • Pre-tax benefits premiums

    Conduent will notify you in April each year if you are an HCE for the current year.

Not Participating in Conduent’s Savings Plan?

All employees are eligible to participate in the Conduent Savings Plan at any time. Learn more about the plan and how to enroll today.

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