Roth 401(k) Calculator
Compare traditional vs Roth 401(k) contributions
401(k) Details
Total balance across all 401(k) accounts
2025 limit: $23,500 (age under 50)
Employer contributions are always pre-tax
Historical S&P 500 average: ~10%
Tax Rates
Your tax bracket now
Expected tax bracket in retirement
Traditional vs Roth Comparison
Enter your 401(k) details and click Calculate
Compare Traditional vs Roth options
Traditional vs Roth 401(k)
Key Differences
| Feature | Traditional 401(k) | Roth 401(k) |
|---|---|---|
| Contributions | Pre-tax (reduces taxable income) | After-tax (no immediate benefit) |
| Growth | Tax-deferred | Tax-free |
| Withdrawals | Taxed as ordinary income | Tax-free if qualified |
| RMDs at 73 | Required | Required (can roll to Roth IRA to avoid) |
2025 Contribution Limits
- Employee contributions: $23,500 (under 50), $31,000 (50+)
- Total limit (employee + employer): $70,000 (under 50), $77,500 (50+)
- Limits apply to combined Traditional + Roth contributions
When Traditional is Better
- You are in a high tax bracket now and expect lower in retirement
- You need to reduce current taxable income
- You expect tax rates to decrease in the future
When Roth is Better
- You are in a low tax bracket now and expect higher in retirement
- You want tax-free income in retirement
- You believe tax rates will increase in the future
- You have a long time horizon (more tax-free growth)
Consider Both!
Many experts recommend having both Traditional and Roth accounts for tax diversification. This gives you flexibility in retirement to manage your tax situation by choosing which accounts to withdraw from based on your income needs.
Disclaimer: This calculator is for informational purposes only and should not be considered financial, tax, or legal advice. Results are estimates based on the information provided and current tax laws. Consult a qualified professional for advice specific to your situation.
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