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!

Related Content

Stay Safe with a Business Owner's Policy

Stay Safe with a Business Owner's Policy

Learn the advantages of Business Owner's Policies with this highly educational and fun animated video.

Estimating the Cost of College

Estimating the Cost of College

This worksheet can help you estimate the costs of a four-year college program.

The Fed and How It Got That Way

The Fed and How It Got That Way

Here is a quick history of the Federal Reserve and an overview of what it does.