Roth 401(k) vs. Traditional 401(k)?

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contribute to your 401(k) account on an after-tax basis—and pay no taxes on qualifying distributions when the money is withdrawn.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prove to be a better option than contributing on a pretax basis, where deposits are subject to taxes when the money is withdrawn.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

See Definitions below for more information.

To use this calculator, change entries and select “Calculate” to view new results.

This illustration does not take into account certain fees and expenses that may be charged to your investment. Mutual of America does not provide tax or legal advice. You should contact your tax or legal adviser concerning your particular situation.

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