How Do I Calculate a Traditional 401(k) vs. a Roth 401(k)?
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Contributions to a Traditional 401(k) plan are made on a pre-tax basis, resulting in a lower tax bill and higher take-home pay. Contributions made to a Roth 401(k) account are made on an after-tax basis, which means that taxes are paid on the amount contributed in the current year. The reverse is true once you are eligible to make 401(k) withdrawals. Withdrawals from Traditional 401(k) plans are taxable, while qualified distributions from a Roth 401(k) account are not. Don't forget to factor in your other assets, income and investment such as equity in a home, Social Security benefits, individual retirement plan investments, savings accounts, and interests in other qualified and non-qualified plan.

Use this calculator to compare a Traditional 401(k) vs. a Roth 401(k).

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The calculations provided by this calculator are based entirely on the information you enter, including any savings rate or expected rate of return. These calculations do not reflect the terms available for any Regions savings or other deposit accounts.

This tool is provided for educational purposes only and should not be construed as a recommendation or suggestion as to the advisability of acquiring, holding or disposing of a particular investment, nor should it be construed as a suggestion or indication that the particular investment or investment course of action that may be described herein is appropriate for any specific retirement investor. In providing this tool, Regions is not undertaking to provide impartial investment advice or to give advice in a fiduciary capacity.

This information should not be relied on or interpreted as accounting, financial planning, legal or tax advice. Regions encourages you to consult a professional concerning your specific situation and visit irs.gov for current tax rules.