Roth vs Traditional 401k
Compare pre-tax (Traditional) vs after-tax (Roth) contributions
$
%
%
Traditional
Tax Deferred
$1,016,642
Pre-tax balance
After 15% tax:
$864,146
Roth
Tax Free Growth
$792,981
Tax-free balance
After 0% tax:
$792,981
How It Works
T
Traditional 401k
Save 22% in taxes now, pay taxes when you withdraw
R
Roth 401k
Pay taxes now, withdraw tax-free in retirement
Advertisement