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

Inputs

Annual Contribution

$0 $100,000

Years to Retirement

1 50

Annual Rate of Return (%)

%

Current Tax Rate (%)

▼

Expected Retirement Tax Rate (%)

▼

Future Value of Roth 401(k)

$ 883,609

Future Value of Traditional 401(k)

$ 1,132,832

After-Tax Value of Traditional 401(k)

$ 795,248

Understanding some basic concepts may help you assess whether zero-coupon bonds have a place in your portfolio.

Bonds may outperform stocks one year only to have stocks rebound the next.

Have income that isn’t subject to tax withholding? Or insufficient withholdings? You may have to pay estimated taxes.