Roth vs. Traditional 401(k) and your Paycheck

A 401(k) can be an effective retirement tool. As of January 2006, Roth 401(k) contributions allow you to contribute to your account on an after-tax basis and pay no taxes on qualifying distributions when the money is withdrawn. For some investors, this could be a better option than the traditional 401(k) contributions, in which deposits are made on a pretax basis but are subject to taxes when the money is withdrawn. Use this calculator to help determine the option that could work for you and how it might affect your paycheck.

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Information and interactive calculators are made available to you only as self-help tools for your independent use and are not intended to provide investment or tax advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.