Traditional vs Roth 401(k) Examples

Rising Earner Examples

Examples where the current tax rate is below the assumed retirement tax rate, so Roth wins under these assumptions.

40 examples

Rising Earner 401(k) Choice: $3,000/Year at 12% Now vs 22% Later, 6% Return Over 20 Years $3,000/year · 12% now · 22% retirement
Rising Earner 401(k) Choice: $3,000/Year at 12% Now vs 24% Later, 7% Return Over 25 Years $3,000/year · 12% now · 24% retirement
Rising Earner 401(k) Choice: $3,000/Year at 12% Now vs 32% Later, 6% Return Over 15 Years $3,000/year · 12% now · 32% retirement
Rising Earner 401(k) Choice: $3,000/Year at 22% Now vs 24% Later, 7% Return Over 20 Years $3,000/year · 22% now · 24% retirement
Rising Earner 401(k) Choice: $3,000/Year at 22% Now vs 32% Later, 6% Return Over 25 Years $3,000/year · 22% now · 32% retirement
Rising Earner 401(k) Choice: $3,000/Year at 22% Now vs 35% Later, 7% Return Over 15 Years $3,000/year · 22% now · 35% retirement
Rising Earner 401(k) Choice: $3,000/Year at 12% Now vs 22% Later, 8% Return Over 30 Years $3,000/year · 12% now · 22% retirement
Rising Earner 401(k) Choice: $3,000/Year at 22% Now vs 24% Later, 6% Return Over 10 Years $3,000/year · 22% now · 24% retirement
Rising Earner 401(k) Choice: $6,000/Year at 12% Now vs 22% Later, 6% Return Over 20 Years $6,000/year · 12% now · 22% retirement
Rising Earner 401(k) Choice: $6,000/Year at 12% Now vs 24% Later, 7% Return Over 25 Years $6,000/year · 12% now · 24% retirement
Rising Earner 401(k) Choice: $6,000/Year at 12% Now vs 32% Later, 6% Return Over 15 Years $6,000/year · 12% now · 32% retirement
Rising Earner 401(k) Choice: $6,000/Year at 22% Now vs 24% Later, 7% Return Over 20 Years $6,000/year · 22% now · 24% retirement
Rising Earner 401(k) Choice: $6,000/Year at 22% Now vs 32% Later, 6% Return Over 25 Years $6,000/year · 22% now · 32% retirement
Rising Earner 401(k) Choice: $6,000/Year at 22% Now vs 35% Later, 7% Return Over 15 Years $6,000/year · 22% now · 35% retirement
Rising Earner 401(k) Choice: $6,000/Year at 12% Now vs 22% Later, 8% Return Over 30 Years $6,000/year · 12% now · 22% retirement
Rising Earner 401(k) Choice: $6,000/Year at 22% Now vs 24% Later, 6% Return Over 10 Years $6,000/year · 22% now · 24% retirement
Rising Earner 401(k) Choice: $9,000/Year at 12% Now vs 22% Later, 6% Return Over 20 Years $9,000/year · 12% now · 22% retirement
Rising Earner 401(k) Choice: $9,000/Year at 12% Now vs 24% Later, 7% Return Over 25 Years $9,000/year · 12% now · 24% retirement
Rising Earner 401(k) Choice: $9,000/Year at 12% Now vs 32% Later, 6% Return Over 15 Years $9,000/year · 12% now · 32% retirement
Rising Earner 401(k) Choice: $9,000/Year at 22% Now vs 24% Later, 7% Return Over 20 Years $9,000/year · 22% now · 24% retirement
Rising Earner 401(k) Choice: $9,000/Year at 22% Now vs 32% Later, 6% Return Over 25 Years $9,000/year · 22% now · 32% retirement
Rising Earner 401(k) Choice: $9,000/Year at 22% Now vs 35% Later, 7% Return Over 15 Years $9,000/year · 22% now · 35% retirement
Rising Earner 401(k) Choice: $9,000/Year at 12% Now vs 22% Later, 8% Return Over 30 Years $9,000/year · 12% now · 22% retirement
Rising Earner 401(k) Choice: $9,000/Year at 22% Now vs 24% Later, 6% Return Over 10 Years $9,000/year · 22% now · 24% retirement
Rising Earner 401(k) Choice: $12,000/Year at 12% Now vs 22% Later, 6% Return Over 20 Years $12,000/year · 12% now · 22% retirement
Rising Earner 401(k) Choice: $12,000/Year at 12% Now vs 24% Later, 7% Return Over 25 Years $12,000/year · 12% now · 24% retirement
Rising Earner 401(k) Choice: $12,000/Year at 12% Now vs 32% Later, 6% Return Over 15 Years $12,000/year · 12% now · 32% retirement
Rising Earner 401(k) Choice: $12,000/Year at 22% Now vs 24% Later, 7% Return Over 20 Years $12,000/year · 22% now · 24% retirement
Rising Earner 401(k) Choice: $12,000/Year at 22% Now vs 32% Later, 6% Return Over 25 Years $12,000/year · 22% now · 32% retirement
Rising Earner 401(k) Choice: $12,000/Year at 22% Now vs 35% Later, 7% Return Over 15 Years $12,000/year · 22% now · 35% retirement
Rising Earner 401(k) Choice: $12,000/Year at 12% Now vs 22% Later, 8% Return Over 30 Years $12,000/year · 12% now · 22% retirement
Rising Earner 401(k) Choice: $12,000/Year at 22% Now vs 24% Later, 6% Return Over 10 Years $12,000/year · 22% now · 24% retirement
Rising Earner 401(k) Choice: $15,000/Year at 12% Now vs 22% Later, 6% Return Over 20 Years $15,000/year · 12% now · 22% retirement
Rising Earner 401(k) Choice: $15,000/Year at 12% Now vs 24% Later, 7% Return Over 25 Years $15,000/year · 12% now · 24% retirement
Rising Earner 401(k) Choice: $15,000/Year at 12% Now vs 32% Later, 6% Return Over 15 Years $15,000/year · 12% now · 32% retirement
Rising Earner 401(k) Choice: $15,000/Year at 22% Now vs 24% Later, 7% Return Over 20 Years $15,000/year · 22% now · 24% retirement
Rising Earner 401(k) Choice: $15,000/Year at 22% Now vs 32% Later, 6% Return Over 25 Years $15,000/year · 22% now · 32% retirement
Rising Earner 401(k) Choice: $15,000/Year at 22% Now vs 35% Later, 7% Return Over 15 Years $15,000/year · 22% now · 35% retirement
Rising Earner 401(k) Choice: $15,000/Year at 12% Now vs 22% Later, 8% Return Over 30 Years $15,000/year · 12% now · 22% retirement
Rising Earner 401(k) Choice: $15,000/Year at 22% Now vs 24% Later, 6% Return Over 10 Years $15,000/year · 22% now · 24% retirement

Peak-Earner Examples

Examples where the current tax rate is above the assumed retirement tax rate, so Traditional wins under these assumptions.

40 examples

Equal Tax Bracket Examples

Examples where the current and assumed retirement tax rates match, so the modeled comparison is a tie.

40 examples

Long-Horizon Compounding Examples

Examples with a fixed Roth-favorable tax-rate gap across a wide range of years, showing how the gap widens over time.

40 examples

Catch-Up Contributor Examples

Examples with a fixed Traditional-favorable tax-rate gap, larger contributions, and a short years-to-retirement horizon.

40 examples