Roth 401(k) vs. Traditional 401(k)
The choice between a Roth and a traditional 401(k) often comes down to one question: is your tax rate likely to be lower now or in retirement? Enter your contribution, time frame, and tax rates to compare what each could be worth after taxes.
About these numbers
Compares the two on an equal pre-tax budget: the Roth contribution is the traditional amount reduced by your current tax rate. Assumes contributions at the end of each year, the same return every year, a single flat tax rate on all traditional withdrawals, and no state taxes, fees, or employer match. Tax laws and your own rates can change, so consider talking with a tax professional about your situation.
This calculator is a hypothetical illustration for educational purposes only. Results are based on the assumptions you enter and the method described above, may vary with each use and over time, do not reflect any specific investment or the deduction of fees or taxes unless stated, and are not a guarantee of future results. The tool does not consider every investment, account type, or strategy that may be available to you. It is not investment, tax, or legal advice. Investing involves risk, including possible loss of principal. 4:8 Financial does not provide tax or legal advice; please consult your CPA or attorney regarding your specific situation.
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