Traditional vs. Roth 401(k)/403(b) analyzer
If your 401(k) or 403(b) retirement plan accepts both traditional and Roth contributions, you have two ways to save for your retirement. Both offer federal income tax advantages.
Traditional accounts provide a tax break now. Traditional contributions are not taxed at the time of investment. Instead, taxes are paid on withdrawals, including any earnings. Getting a tax break at the time of investment will leave more money in your pocket now — money that you can invest, save or spend.
Roth accounts provide a tax advantage later. Roth contributions are made with money that’s already been taxed, so you won’t have to pay taxes on qualified withdrawals, including earnings.
Enter your personal information to compare the results of traditional before-tax savings and Roth after-tax savings. Click each question for help and additional information.