Roth vs Traditional 401k
Find out whether Roth or Traditional contributions put more money in your pocket in retirement — modeled against your expected income, withdrawals, and a realistic tax table.
Traditional wins — Your effective rate on 401k withdrawals (
12%) is lower than your current marginal rate (
22%). Deferring taxes to a lower bracket saves more money overall.
Traditional wins if your effective retirement rate stays below 22% (your current marginal rate).
Your Marginal Rate Now
22%
Effective Rate on 401k W/D
12%
Annual Tax Savings (Trad)
$5,390.00
Account Balance at 65
$3,386,803.52
Traditional Net
$3,725,991.89
Simplified: after-tax withdrawal [Gross × (1−r)] + reinvested savings
$3.4M × (1−12%) + $745k
Roth Net
$3,386,803.52
Full balance, no tax at withdrawal
Traditional Advantage
$339,188.37
After-Tax Value vs Effective Retirement Tax Rate
Lines cross at 22% (your current marginal rate). Left = Traditional wins; right = Roth wins. Red line = effective rate computed from your retirement income inputs and selected tax table.