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

Bonds may outperform stocks one year only to have stocks rebound the next.

The earlier you start pursuing financial goals, the better your outcome may be.

Some people may want a more advanced gifting strategy that can maximize their gift and generate potential tax benefits.