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401(k) vs Roth IRA Comparison

The 401(k) vs Roth IRA decision shapes your retirement strategy. 401(k)s offer higher contribution limits and employer matching, while Roth IRAs provide tax-free withdrawals and more flexibility. Many investors use both for optimal tax diversification.

A

401(k) Plan

yrs
18 yrs30 yrs70 yrs
yrs
50 yrs65 yrs80 yrs
$20,000.00$75,000.00$500,000.00
$0.00$25,000.00$2,000,000.00
%
0%10%100%
%
0%5%15%
%
0%3%10%
%
0%7%15%

Retirement Projection

$2,633,101.55
Projected Balance
Your Contributions$453,466
Employer Match$226,733
Investment Growth$1,927,903

Account Growth

B

Roth IRA

yrs
18 yrs30 yrs70 yrs
yrs
50 yrs65 yrs80 yrs
$20,000.00$75,000.00$500,000.00
$0.00$25,000.00$2,000,000.00
%
0%10%100%
%
0%5%15%
%
0%3%10%
%
0%7%15%

Retirement Projection

$2,633,101.55
Projected Balance
Your Contributions$453,466
Employer Match$226,733
Investment Growth$1,927,903

Account Growth

Key Differences

The 401(k) vs Roth IRA decision shapes your retirement strategy. 401(k)s offer higher contribution limits and employer matching, while Roth IRAs provide tax-free withdrawals and more flexibility. Many investors use both for optimal tax diversification.

Which Option is Better?

The best choice depends on your individual financial situation, goals, and constraints. Use the calculators above to compare both options with your specific numbers.

  • Adjust the values in both calculators to match your scenario
  • Compare monthly payments, total costs, and long-term impact
  • Consider your cash flow, savings goals, and risk tolerance