401k or Roth 401k Calculator

A 401k can be an effective retirement tool. Since January 2006, the Roth 401k has offered retirement savers another important 401k option.1 Roth 401k contributions allow you to contribute to your 401k account on an after-tax basis – and pay no taxes on qualifying distributions when the money is withdrawn. For some investors, this could prove to be a better option than the Traditional 401k contributions, where deposits are made on a pre-tax basis but are subject to taxes when the money is withdrawn. But deciding which option is best depends on multiple factors and can be a very complex process. Our 401k or Roth 401k Calculator provides the framework you need to make the right choice.

Using the 401k or Roth 401k Calculator

Use this Roth 401k vs 401k calculator to help determine the option that could work for you and how it might affect your paycheck. Enter your own information into our 401k or Roth 401k calculator. You can easily change the inputs to see what the impact will be. Areas highlighted in red will need to be filled in in order for the 401k calculator to produce meaningful results. You can also generate a report showing how contributions, earnings and taxes will affect the value of both traditional and Roth 401k accounts using your personalized inputs. This analysis can help guide you to answer the question: Which is best option for me – Traditional 401k or Roth 401k?

Information and interactive 401k calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.

  1. For more information, visit the IRS FAQs on Designated Roth Accounts []