Important Notice
These calculators are for educational and informational purposes only. Results are estimates based on the information you provide and should not be considered financial, tax, or investment advice. Your actual results may vary. For personalized guidance, please consult a qualified financial advisor, tax professional, or other appropriate expert.
People Also Ask
Is Roth 401k better than traditional 401k?
It depends on tax rates. Roth is typically better if your retirement tax rate will be higher than your current rate. Traditional is typically better if your current rate is higher. Many split contributions for tax diversification.
What is the 401k contribution limit?
For 2024, the employee limit is $23,000 ($30,500 if 50+). This limit applies to the total of traditional and Roth contributions combined. Employer matches don't count against this limit.
Does employer match go to Roth or traditional?
Employer matches always go to the traditional (pre-tax) side, even if you contribute to Roth 401(k). This is due to tax law - employers can't make Roth contributions on your behalf.
Can I contribute to both traditional and Roth 401k?
Yes, if your plan allows. You can split contributions any way you like, up to the annual limit. Some people contribute enough traditional to get the full match, then the rest to Roth.