Roth 401(k) / 403(b) vs. Traditional 401(k) / 403(b)

A 401(k)/403(b) can be an effective retirement tool. As of January 2006, there is a new type of 401(k)/403(b) - the Roth 401(k)/403(b). The Roth 401(k)/403(b) allows you to contribute to your 401(k)/403(b) account on an after-tax basis - and pay no taxes on qualifying distributions when the money is withdrawn. For some investors, this could prove to be a better option than the Traditional 401(k)/403(b), where deposits are made on a pre-tax basis but are subject to taxes when the money is withdrawn. Use this calculator to help determine the best option for your retirement.


The information provided and interactive calculators are intended to serve as self-help educational tools for illustrative purposes only and are not intended to project investment results, or to provide legal or investment advice. Your circumstances are unique, therefore, you need to take your personal information into account when reviewing the information provided. Different assumptions concerning earnings, taxes, investment rate of return, and retirement age will impact the results. Also, rates of return and your personal circumstances will most likely change over time, so review your financial strategy periodically to be sure your strategy continues to fit your situation. Please note that high projected rates of return includes a higher degree of risk to principal.