I am currently working in the UK on an expat assignment and have a question about contributions to my 401(k) plan. Under this expat status, taxes are covered by my employer, therefore I do not receive any personal financial benefit from contributing to my 401(k) plan on a pre-tax basis. I do, although, receive an employer match of approximately 25% of my pre-tax contribution.
I am wondering if I should contribute to the plan on a pre-tax or after-tax basis. As I mentioned above, the pre-tax contributions will be matched by approximately 25% but all these amounts will be taxed upon withdrawal. If I contribute on an after-tax basis, I will not receive an employer match, but will not be subject to tax on the amounts of my contribution upon withdrawal.
Any thoughts?
