Roth 401(k) vs. Traditional 401(k)

Choosing between a Roth 401(k) and a Traditional 401(k) often comes down to one key question: when do you expect to pay a lower tax rate? Use this calculator to compare the potential future values of each account type based on your contribution amount, time horizon, expected rate of return, and tax rates.

Inputs

Remember, these results are hypothetical and for illustrative purposes only and do not represent the performance of any specific investment.

$0 $100,000
1 50
%

Results

Future Value of Roth 401(k)
$ 883,609
Future Value of Traditional 401(k)
$ 1,132,832
After-Tax Value of Traditional 401(k)
$ 883,609

Have A Question About This Topic?

Thank you! Oops!

Learn How to Stay Calm Amidst Market Volatility

In this ebook, we outline how to stay the course through market ups and downs. Our tips will help you anticipate, rather than fear, market movement.



Thank you! Oops!

Related Content

Please Leave Home Without It

Please Leave Home Without It

Concerns over identity theft continue to grow, especially with data breaches at major companies and financial institutions.

Exit Strategies of the Rich and Famous

Exit Strategies of the Rich and Famous

Estate conservation is too important to put off. Do you have a smart exit strategy?

Timing Your Retirement

Timing Your Retirement

This short video illustrates the importance of understanding sequence of returns risk.