Roth IRA vs. 401(k) Calculator
Enter your details to compare future after-tax values.
The Core Difference
The choice between a Roth IRA and a Traditional 401(k) often comes down to when you pay taxes.
With a Traditional 401(k), you deduct contributions now (saving money today), but pay income tax on the withdrawals in retirement. With a Roth IRA, you pay taxes on the money today, but the money grows tax-free and qualified withdrawals in retirement are 100% tax-free.
Definitions
The total amount of gross (pre-tax) income you have available to set aside. The calculator assumes this amount goes fully into the 401(k), whereas for the Roth, taxes are deducted before investing.
If your tax rate today is higher than in retirement, the Traditional 401(k) usually wins mathematically. If you expect taxes to be higher in retirement (or you are in a low bracket now), the Roth is often superior.
Projected After-Tax Value
| Gross Contribution | $0.00 |
| Time Horizon | 0 Years |
| Tax Rates | 0% Now vs 0% Later |
| Results Summary | ||
|---|---|---|
| Category | Roth IRA (Tax Now) | Traditional 401(k) (Tax Later) |
| Starting Principal | $0 | $0 |
| Taxes Paid Now Upfront Deduction | $0 | $0 |
| Gross Balance At Retirement | $0 | $0 |
| Est. Taxes Later Upon Withdrawal | $0 | $0 |
| NET AFTER-TAX | $0 | $0 |