At the start of your retirement, a Roth 401(k) would have $-21,474.03 more in after-tax retirement savings than a Traditional 401(k) plan. However, were you to invest the tax-savings from a Traditional 401(k) in a savings account with the same rate of return as the 401(k), that account would have $67,489.81 at the start of your retirement.
Contributions to a Traditional 401(k) plan are made on a pre-tax basis, resulting in a lower tax bill, and higher take-home pay. Contributions made to a Roth 401(k) are made on an after-tax basis, which means that taxes are paid on the amount contributed in the current year. The reverse is true once you are eligible to make 401(k) withdrawals. Withdrawals from Traditional 401(k) plans are taxable, while those made from a Roth 401(k) are not.
This calculator is provided only as a general self-help planning tool. Results depend on many factors, including the assumptions you provide and may vary with each use and over time. We do not guarantee its accuracy, or applicability to your circumstances.