Regular 401(k) vs. Roth 401(k)
You can use this calculator to compare the results of contributing to a regular 401(k) versus a Roth 401(k) (a designated Roth account).
To open this calculator, click Calculators in the toolbar, and then click Retirement > Regular 401(k) vs. Roth 401(k) in the left panel.
You can export the data as a PDF file or clear all data that you entered. For more information, see Financial calculators.
Example
A taxpayer is offered an opportunity to contribute to a Roth 401(k) at his current employer. What tax savings are available?
Field | Input |
---|---|
Monthly gross pay | $7,200 |
Employee contribution rate | 14.00% |
Employer match rate | 4.00% |
Federal tax rate | 25.0% |
State tax rate | 4.00% |
State tax deducted on federal return? | Yes |
Years of contributions | 26 |
Annual rate of return | 8.00% |
Combined tax rate during retirement | 25.00% |
Years of retirement | 30 |
Annual rate of return during retirement | 4.00% |
In this example, the results show that they will not have enough accumulated investment at retirement to meet their goal of $2,800 per month. They will need $313,706.00 at retirement to meet their goal of having $2,800 per month in retirement income.
Internal notes
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