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Roth vs. Traditional 401(k) Comparison

Compare the after-tax value of contributing to a Roth 401(k) versus a Traditional 401(k) under different tax-rate assumptions.

Your assumptions

Note: This is a simplified comparison. It assumes the Traditional contribution lets you invest the up-front tax savings in a separate taxable account at the same return, taxed at long-term capital-gains rates of 15% on growth.

After-tax value at retirement

Roth 401(k)
$0
Tax paid up front. Withdrawals tax-free.
Traditional 401(k)
$0
Tax-deferred. Taxed on withdrawal at retirement rate.

Roth pre-tax contribution growth
$0
Traditional balance at retirement (pre-tax)
$0
Tax savings invested separately (Traditional advantage)
$0
Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment, tax, or legal advice. We cannot and do not guarantee their applicability or accuracy in regard to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.

Tax-aware planning is more than one calculator.

Roth conversions, RMDs, and tax bracket management compound over decades. Let's run the real numbers together.

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