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

Your retirement income can vary widely depending on what type of account holds your savings and what assumptions are made about overall returns 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).

Savings

Distribution

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Accumulation

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This is a hypothetical example used for illustrative purposes only. This worksheet provides an estimate based on certain assumptions. It is not intended to provide specific investment advice. Distribution rules are similar for most retirement plans, including 401(k) plans, SIMPLE plans, and SEP IRAs. Distributions are taxed as ordinary income and, if taken before age 59½, may be subject to a 10% federal income tax penalty. With 401(k), SIMPLE plans, SEP IRAs, Under the SECURE Act, in most circumstances, once you reach age 72, you must begin taking required minimum distributions from a 401(k), SIMPLE plans and SEP IRAs. You may continue to contribute to IRAs past age 70½ under the SECURE Act as long as you meet the earned-income requirement.