Can I contribute to both Roth and Traditional?

Yes — many savers split contributions to diversify future tax exposure, since nobody knows future tax rates for certain.

Roth vs Traditional 401(k) Calculator

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Roth vs Traditional

After-tax value • Break-even

Annual contribution (pre-tax)

Years until retirement

yrs

Expected annual return

Tax rate now

Tax rate in retirement

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Enter your plan to compare Roth vs Traditional

How the Roth vs Traditional Calculator Works

Enter your contribution, years, and return.
Set your tax rate now and in retirement.
See the after-tax value of each — the only fair comparison — and which wins.

Roth vs Traditional: The Honest Comparison

The whole decision comes down to one thing: your tax rate now vs in retirement. A Traditional 401(k)/IRA deducts contributions today and taxes withdrawals later. A Roth is funded with after-tax dollars and grows tax-free. Comparing the same pre-tax contribution, the after-tax result is simply: Traditional = future value × (1 − retirement rate); Roth = future value × (1 − today's rate).

So Roth wins if your tax rate will be higher in retirement (or you're young/low-bracket now); Traditional wins if your rate will be lower later. When the rates are equal, they tie. Many people split contributions to hedge. Estimate only; not tax advice.

Roth vs Traditional FAQ

Is Roth or Traditional better? ▾

Roth is better if your tax rate in retirement will be the same or higher than today; Traditional is better if it will be lower. Young savers and those in low brackets usually favor Roth.

Why compare after-tax values? ▾

A Traditional balance still owes taxes at withdrawal, while a Roth doesn't — so comparing pre-tax balances is misleading. The after-tax value is the true apples-to-apples figure.

Can I do both? ▾

Yes — many savers split contributions between Roth and Traditional to diversify their future tax exposure, since nobody knows future tax rates for certain.