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401(k) vs Roth 401(k) Calculator

Compare equal employee deferrals into a Traditional 401(k) versus a Roth 401(k), with employer matching treated as pre-tax in both paths.

Quick answer: Traditional 401(k) contributions reduce taxable income today; Roth 401(k) contributions trade that deduction for tax-free qualified withdrawals later. The better choice depends on current versus future tax rates.

SWReviewed by SwitchWize Research Desk · Last reviewed July 18, 2026
Traditional 401(k) After-Tax at Withdrawal
$1,573,636
Traditional 401(k) After-Tax at Withdrawal
$1,573,636
Annual Employer Match
$6,600
Traditional 401(k) Value (pre-tax)
$1,967,045
Roth Scenario After-Tax Value
$1,883,556
Side-by-side comparison
Signed Roth Difference vs Traditional
$309,920
Signed Traditional Difference vs Roth
-$309,920
Illustrative Current Tax Savings (Traditional)
$5,880
Traditional Contribution at Equal Take-Home Cost
$24,500
Traditional 401(k) After-Tax at Withdrawal (Equal Cash Cost)
$1,573,636
Signed Roth Difference vs Traditional (Equal Cash Cost)
$309,920
Equal-Cost-Mode Margin (% of Larger Balance)
16.45%
Diagnostic

Under equal dollar contributions, Roth comes out ahead by $309,920 after 25 years.

But that comparison doesn't credit Traditional with its current-year tax savings. Under equal take-home-pay cost instead, the signed Roth-minus-traditional difference is $309,920 -- about 16.45% of the larger ending balance, so a small number here means this is a close call, not a clear winner -- test which framing matches how you'd actually treat the tax savings.

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What to do next

Under equal contributions, Roth comes out ahead by $309,920. Check the equal-cash-cost comparison too. It credits Traditional with its current-year deduction and often narrows or flips this.

Your action plan
  1. 1

    Compare the leading option against your current setup

    Compare equal 2026 employee deferrals while treating employer matching dollars as pre-tax in both paths.

  2. 2

    Check the assumptions before using the result for a high-stakes decision

    Assumptions change the answer, especially when rates, taxes, or timing matter.

  3. 3

    Save the result to Money Map or use the linked next action

    Turn the result into a prioritized action instead of treating it as a one-off number.

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This is an educational estimate, not tax, legal, investment, or lending advice. Tax rules, rates, and eligibility change and depend on your full situation. Confirm with a qualified professional or the provider before acting.

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Frequently Asked Questions

Everything you need to know.

Is a Roth 401(k) always better than a Traditional 401(k)?
No, it depends on whether you expect to be in a higher or lower tax bracket in retirement than you are now. If your rate is likely to be lower in retirement, Traditional's up-front deduction tends to win; if it's likely to be similar or higher, Roth's tax-free withdrawals tend to win.
Does employer match go into the Roth or Traditional side?
Employer matching contributions are pre-tax regardless of which type of 401(k) the employee chooses, so this calculator treats the match consistently on both paths rather than assuming it follows the employee's Roth or Traditional election.
Does a Roth 401(k) have required minimum distributions?
As of recent rule changes, Roth 401(k)s no longer require RMDs during the original owner's lifetime, matching Roth IRA treatment, which is one factor beyond the tax-rate comparison worth weighing alongside this calculator's projection.
Is the 401(k) vs Roth 401(k) Calculator free to use?
Yes. SwitchWize calculators are free, and you do not need an account to run scenarios or view the result.
Does using the 401(k) vs Roth 401(k) Calculator affect my credit score?
No. Using a calculator does not trigger a credit check. A credit impact can occur only if you apply directly with a lender, card issuer, or provider.
Are the results personalized financial advice?
No. Calculator outputs are educational estimates based on the inputs you enter. Review assumptions and confirm terms directly with providers before making a financial decision.
What should I do after seeing the result?
Use the recommendation module on this page to compare top ira accounts, or run Money Map to compare this investing & retirement decision with your other opportunities.
How does SwitchWize choose related offers?
Related offers are matched by the calculator surface (ira) and ranked using SwitchWize data such as rate, fees, trust signals, product fit, and switching friction. Paid relationships do not change organic ranking order.
How fresh are the rates and offers shown?
Rate and offer data is reviewed on a recurring cadence and every offer module shows review context or links to the methodology and disclosure pages.
Where can I see the ranking methodology?
The SwitchWize methodology page explains how rate freshness, editorial review, affiliate disclosure, and category ranking factors work.
Can Money Map use this result?
Yes. Money Map is the broader diagnostic path: it compares savings, mortgage, cards, and debt so you can see whether this calculator result is your highest-impact next move.

Why This Matters

The Traditional-versus-Roth choice comes down to whether you expect your tax rate to be higher or lower in retirement than it is today, but that comparison only holds if the same dollar amount is actually going in on both sides. Employer match is always pre-tax regardless of which option the employee chooses, so comparing the two paths with that held constant is what makes the comparison fair rather than accidentally comparing different contribution amounts.

How to Use It

  1. 1Enter your annual employee deferral and expected employer match
  2. 2Set your current tax rate and your expected tax rate in retirement
  3. 3Choose your time horizon and expected investment return
  4. 4Compare the after-tax retirement value of the Traditional and Roth paths side by side
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