401(k) Tax Comparison
Traditional vs Roth 401(k) Calculator
Compare projected Traditional and Roth 401(k) after-tax values using editable contribution, return, and tax-rate assumptions.
Use the Traditional vs Roth 401(k) Calculator
Your results
- Projected Roth 401(k) value
- $0.00
- Projected Traditional 401(k) after-tax value
- $0.00
- Difference
- $0.00
- Higher value under assumptions
- Not calculated
Traditional and Roth 401(k) Comparison
How this calculator works
- What it does
- Compare projected Traditional and Roth 401(k) after-tax values using editable contribution, return, and tax-rate assumptions.
- Inputs used
- The estimate uses annual pre-tax contribution budget, current assumed tax rate (%), retirement assumed tax rate (%), expected annual return (%), and years invested.
- Calculation approach
- The calculator applies the relationships defined for the traditional vs roth 401(k) calculator to those inputs and updates projected roth 401(k) value, projected traditional 401(k) after-tax value, difference, and higher value under assumptions.
- How to read the result
- Treat the result as a scenario based on the values entered. Compare a few reasonable inputs and consider costs, taxes, timing, or risks that the calculator does not include.
How to Use This Calculator
- Enter Annual pre-tax contribution budget and Current assumed tax rate (%) using values that match the scenario you want to evaluate.
- Enter Retirement assumed tax rate (%) and Expected annual return (%) using values that match the scenario you want to evaluate.
- Enter Years invested using values that match the scenario you want to evaluate.
- Review the assumptions for the traditional vs roth 401(k) calculator, especially rates, time periods, and optional amounts.
- Select Calculate to update the results, then adjust one input at a time to compare scenarios.
Understanding the Results
- Projected Roth 401(k) value
- The projected roth 401(k) value estimated by the Traditional vs Roth 401(k) Calculator using annual pre-tax contribution budget, current assumed tax rate (%), and retirement assumed tax rate (%) and the other values entered.
- Projected Traditional 401(k) after-tax value
- The projected traditional 401(k) after-tax value estimated by the Traditional vs Roth 401(k) Calculator using annual pre-tax contribution budget, current assumed tax rate (%), and retirement assumed tax rate (%) and the other values entered.
- Difference
- The difference between the current position and the calculated target or comparison value.
- Higher value under assumptions
- The higher value under assumptions estimated by the Traditional vs Roth 401(k) Calculator using annual pre-tax contribution budget, current assumed tax rate (%), and retirement assumed tax rate (%) and the other values entered.
Common Mistakes
- Ignoring contribution limits, eligibility rules, taxes, penalties, or account-specific restrictions.
- Comparing pre-tax and after-tax balances as though they were directly equivalent.
- Assuming current tax rates and laws will remain unchanged.
- Treating the calculator result as individualized tax advice.
Frequently asked questions
How does the Traditional vs Roth 401(k) Calculator compare equal budgets?
It reduces the Roth contribution for the entered current tax rate while applying the retirement tax rate to the projected Traditional balance.
Does this 401(k) comparison determine which account type I should choose?
No. It is an educational scenario, not tax, legal, investment, or plan advice.
Are employer matches included in the Traditional versus Roth 401(k) comparison?
No. The comparison isolates employee contributions and tax-rate assumptions. Employer contribution treatment depends on plan rules and law.
Does the comparison include contribution limits, fees, or required distributions?
No. It excludes limits, income effects, plan fees, penalties, required distributions, and changing tax laws.
Why do current and retirement tax rates matter?
The model pays tax before Roth contributions and after Traditional accumulation, so the relative entered rates influence the comparison.
What does the Traditional vs Roth 401(k) Calculator calculate?
Compare projected Traditional and Roth 401(k) after-tax values using editable contribution, return, and tax-rate assumptions. The result is based only on the inputs and assumptions shown on the page.
How should I interpret the higher value under assumptions from the Traditional vs Roth 401(k) Calculator?
Use it as an estimate for the scenario entered, not as a guarantee or personal recommendation. Test changes to annual pre-tax contribution budget, current assumed tax rate (%), and retirement assumed tax rate (%) to see which assumptions have the greatest effect.