Which works for you: Roth 401(k) contributions or traditional 401(k) contributions

A 401(k) plan account can be an effective retirement tool. Roth 401(k) contributions allow you to contribute to your 401(k) account on an after-tax basis and generally pay no federal income taxes on earnings for Qualifyied Distributions when the money is withdrawn. For some investors this could prove to be a better option than the traditional 401(k) contributions, where contributions are made on a pre-tax basis, but are subject to federal income taxes when the money is withdrawn. Use this calculator to help determine the option that could work for you.

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While every effort has been made to provide reliable interactive calculators, ThinkAdvisor does not guarantee their accuracy. Data inputs of numerical values are hypothetical and for illustration purposes only. Data outputs may not be used to predict or project actual investment results. Where rates of return are shown, they are not representative of any particular investment.

Please be advised that this document is not intended as legal or tax advice. Accordingly, any tax information provided in this document is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer. The tax information was written to support the promotion or marketing of the transaction(s) or matter(s) addressed and you should seek advice based on your particular circumstances from an independent tax advisor.