Should I Roth 401(k)?

Determine whether switching to a Roth 401(k) makes sense for your situation.

  • Methods explained
  • Save scenarios
  • Compare saved scenarios
  • Household prefill

401(k) Details

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Traditional vs Roth 401(k)

Traditional 401(k) Value$824,223
Traditional After-Tax Value$626,409
Roth strategy after-tax value$639,090
Tax Savings Now (Traditional)$44,000
Roth Advantage$12,680

Roth has the higher projected after-tax value

The comparison uses the same current take-home cost. Employer matching is calculated separately from each strategy's employee contribution.

How it works›

Model and assumptions. Uses an equal current take-home budget: the Roth employee contribution is reduced by the current tax rate. Each contribution earns its own employer match, capped at the entered share of salary. Employer matching is assumed pretax and taxed on withdrawal for both strategies. The result compares after-tax balances, so a higher future tax rate alone does not establish a Roth advantage. Contribution eligibility and legal limits must be checked separately; qualified Roth withdrawals are assumed.IRS Publication 575IRS Publication 590-BOpenStax: annuity formulas