Roth 401(k)

Roth or Traditional 401(k): Which Might Work Best for You?

Like a traditional 401(k), a Roth 401(k) lets you contribute a portion of your pay to help prepare for retirement. But while a traditional 401(k) offers pre-tax contributions and permits you to defer taxes on gains until withdrawals begin, a Roth 401(k) offers after-tax contributions and permits you to avoid taxes on gains and qualified withdrawals altogether if you meet certain age and holding requirements.

To see how these two plans might potentially compare based on your circumstances, fill in the information below and click Submit.

These calculations are based in part on input provided by the plan sponsor and/or plan participant. Newport Group and its affiliates are not responsible for the accuracy or appropriatness of such input for any particular plan or for any plan participant's financial circumstances. Different investments involve different levels of risk and every investor has their own comfort level with risk. Investors should consult with their financial advisor to determine their personal risk tolerances and what level of portfolio risk may be appropriate for their circumstances before making investment decisions.

These calculations are not intended to be considered as investment, tax, or legal advice. The laws and regulations governing these matters are complex and subject to change. Please consult your investment, tax, and legal advisors for information and guidance that is specific to your plan and your financial circumstances before making investment decisions.

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