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

Forecast

Forecast

This short video helps explain why markets can be as unpredictable as the weather.

Debt-to-Income Ratio Calculator

Debt-to-Income Ratio Calculator

Calculate your debt-to-income ratio to understand how lenders may view your financial health.

The Utility of Sector Investing

The Utility of Sector Investing

Successful sector investing is dependent upon an accurate analysis about when to rotate in and out.