Roth 401(k) vs. Traditional 401(k)

Inputs

Annual Contribution

$0 $100,000

Years to Retirement

1 50

Annual Rate of Return (%)

%

Current Tax Rate (%)

▼

Expected Retirement Tax Rate (%)

▼

Future Value of Roth 401(k)

$ 883,609

Future Value of Traditional 401(k)

$ 1,132,832

After-Tax Value of Traditional 401(k)

$ 795,248

For some, the idea of establishing a retirement strategy evokes worries about complicated reporting and administration.

You face a risk for which the market does not compensate you, that can not be easily reduced through diversification.

Roth 401(k) plans combine features of traditional 401(k) plans with those of a Roth IRA.