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

Four Reasons Millennials Need an Estate Strategy

Four Reasons Millennials Need an Estate Strategy

Estate strategies for millennials may sound like less of a concern than retirement, but young adults should prepare now.

Budget Check Up: Tax Time Is the Right Time

Budget Check Up: Tax Time Is the Right Time

Tax preparation may be the perfect time to give the household budget a check-up.

Understanding Marginal Income Tax Brackets

Understanding Marginal Income Tax Brackets

An inside look at how marginal income tax brackets work.