About the Roth vs. Traditional 401(k) Calculator
Traditional 401(k) contributions are pre-tax and taxed when you withdraw; Roth contributions are after-tax and withdrawn tax-free. Compared on equal take-home cost, the only thing that decides the winner is whether your tax rate is higher now or in retirement. This calculator makes that comparison concrete.
How it’s calculated
Both are projected to the same pre-tax balance. Traditional's after-tax value = balance × (1 − retirement tax rate); Roth's = balance × (1 − today's tax rate). The higher one wins.
Example calculation
Contributing $10,000/year for 30 years at 7%, with a 24% rate today and 22% in retirement, Traditional comes out slightly ahead — because the future rate is lower.
Frequently asked questions
So which should I pick?
Roth if you expect a higher tax rate in retirement (or want tax-free flexibility); Traditional if you expect a lower rate later. Many people split contributions to hedge. This is a simplified estimate, not tax advice.
Does the employer match go to Roth?
Historically employer matches were pre-tax (Traditional) even in a Roth 401(k), though newer rules allow Roth matches. Check your plan.
Retirement projections are estimates based on the assumptions you enter and do not guarantee future outcomes. Contribution limits and tax rules change over time — verify current figures and consider speaking with a financial professional.