Roth 401(k) vs. Traditional 401(k)

A traditional contribution reduces your taxable income today and is taxed when you withdraw it. A Roth contribution is made with money you have already paid tax on, and qualified withdrawals are generally tax free. Which one comes out ahead depends largely on your tax rate now versus your tax rate in retirement.

This calculator is provided for informational and educational purposes only. The results are hypothetical, are based solely on the figures you enter and the assumptions stated on this page, and do not account for taxes, fees, or your individual circumstances unless specifically noted. They are not a projection or a guarantee of future results, and they are not tax, legal, or accounting advice. Nothing on this page is an offer or a solicitation to buy any product. Please consult a qualified tax or legal professional about your situation. Nothing you enter is transmitted or stored. All figures remain in your browser and are cleared when you close this page. This is a simplified comparison. It assumes a single constant rate of return and constant tax rates, and it assumes the tax savings from the traditional contribution are invested rather than spent. It does not account for state taxes, required minimum distributions, employer match treatment, income limits, or changes in tax law. Qualified Roth distributions generally require the account to be held five years and the owner to be 59 and a half or older.