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Compare A Roth 401(k) To A Traditional 401(k) Calculator

Compare a Roth 401(k) to a Traditional 401(k)

Your retirement income can vary widely depending on what type of account holds your savings and what assumptions you make about return and tax rates during the accumulation and withdrawal periods. Use this calculator to help compare employee contributions to the new after-tax Roth 401(k) and the current tax-deductible 401(k).

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Results

Based on the assumptions you provided, your $15,000 annual contribution for 36 years could provide as much as $269,247 per year ($22,437 per month) for your anticipated 30 year distribution period.

* In order to reflect the tax advantaged nature of the Traditional 401(k), a taxable 'side account' has been included to hold the tax savings generated by the income tax deduction.

Summary Table

401(k) Analysis
Accumulation PhaseRoth 401(k) (Non-Deductible)401(k) (Deductible)
Annual contribution (before tax)$15,000$15,000
Additonal tax savings invested in 'side account'*$-0$3,750
Total annual contribution (after tax)$15,000$18,750
Interest rate (accumulation phase)8.00%8.00%
Term (accumulation phase)3636
Account value at retirement$3,031,062$3,504,568
Distribution PhaseRoth 401(k) (Non-Deductible)401(k) (Deductible)
Account value at retirement$3,031,062$3,504,568
Term (distribution phase)3030
Interest rate (distribution phase)8.00%8.00%
Annual income before taxes$269,242$306,941
Annual income tax$0$37,694
After-tax annual income$269,242$269,247
After-tax monthly income$22,437$22,437

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

Embedded Example of this Roth 401(k) vs. Traditional 401(k) Calculator

Embedded Example of this Roth 401(k) vs. Traditional 401(k) Calculator
Money Help Center

This information may help you analyze your financial needs. It is based on information and assumptions provided by you regarding your goals, expectations and financial situation. The calculations do not infer that the company assumes any fiduciary duties. The calculations provided should not be construed as financial, legal or tax advice. In addition, such information should not be relied upon as the only source of information. This information is supplied from sources we believe to be reliable but we cannot guarantee its accuracy. Hypothetical illustrations may provide historical or current performance information. Past performance does not guarantee nor indicate future results.

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