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

Emerging Market Opportunities

Emerging Market Opportunities

What are your options for investing in emerging markets?

Women and Financial Strategies

Women and Financial Strategies

Most women don’t shy away from the day-to-day financial decisions, but some may be leaving their future to chance.

Bridging the Confidence Gap

Bridging the Confidence Gap

In the world of finance, the effects of the "confidence gap" can be especially apparent.