401(k) plans give workers an opportunity to plan for their retirement, provided they meet the eligibility requirements. There are two types of 401(k) plans available to employed citizens: traditional and Roth 401(k) plans.
It can be difficult navigating the distinctions between these two plans, without forecasting each plan's value.
For example, let's say that you are currently 30 years old with an annual yearly income of $45,000.
If you set aside $3,000 per year for your 401(k) at a tax rate of 25%, you can expect to retire at 65 with a traditional 401(k) value of $539,090. A Roth 401(k), on the other hand, will have a retirement value of $404,320.
This calculator is especially valuable for individuals who are already contributing to a 401(k) plan. You'll be able to get a clear idea of your future income. We recommend fiddling around with a few input values to get a solid grasp of what savings you'll have at retirement.
Check out the analysis to get a closer look at these calculations. If you aren't sure what your retirement needs will be, use our retirement calculator to find out.