Newport Group - Traditional or Roth 401(k)? (Calculator)

Traditional or 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.

What is your monthly contribution?

What is your current age?

At what age do you plan to retire?

What is your federal income tax rate?

What do you anticipate your federal income tax rate will be once you retire?

Which approximate annual rate of return do you expect to earn on your investments until you retire?

Which approximate annual rate of return do you expect to earn on your investments after retirement?

For how many years do you anticipate making withdrawals from your 401(k) account?