Compare the estimated after-tax retirement value of pre-tax 401(k) saving with an after-tax Roth IRA scenario.
USD inputs · transparent calculation assumptions
Instant updates as inputs change
Data is calculated in this browser only
USD inputs · transparent calculation assumptions
Simplified after-tax comparison only. Check current IRS contribution, income, withdrawal, and plan rules before acting.
Estimated after-tax value difference (401(k) − Roth)$179,947.80
401(k) value before retirement tax
$920,992.67
401(k) estimated after-tax value
$718,374.28
Roth IRA estimated value
$538,426.48
Annual pre-tax 401(k) contribution
$9,750.00
Annual after-tax Roth contribution
$5,700.00
Estimated retirement tax on 401(k)
$202,618.39
Calculation notes
Understand the 401(k) vs Roth IRA calculator
Project each balance with annual compounding. The pre-tax 401(k) includes the entered employer match and is reduced by the retirement tax rate; the Roth contribution uses the same employee out-of-pocket amount after the current tax rate. The calculation runs locally and keeps cash-flow timing consistent with the stated assumptions.
Formula and logic
How do current and retirement tax rates change a 401(k) versus Roth comparison?
Project each balance with annual compounding. The pre-tax 401(k) includes the entered employer match and is reduced by the retirement tax rate; the Roth contribution uses the same employee out-of-pocket amount after the current tax rate.
Worked example
What Roth contribution matches a $7,500 pre-tax contribution at a 24% tax rate?
At $75,000 salary and a 10% contribution, the employee directs $7,500 before tax. At a 24% current tax rate, the matched out-of-pocket Roth comparison contributes $5,700 per year.
How to read the result
Does employer matching make a 401(k) larger in this projection?
A positive difference favors the modeled after-tax 401(k) value; a negative result favors the modeled Roth value.
Employer match, eligibility, contribution limits, withdrawal rules, and taxes can change the real decision.
Limits and assumptions
Which contribution limits and withdrawal rules are excluded?
This is a simplified tax-rate comparison, not account-eligibility or tax advice. It does not enforce annual IRA/401(k) limits, income phase-outs, vesting, fees, early-withdrawal rules, or required distributions.