401(k) vs. Roth IRA Contribution Planner
Compare potential retirement outcomes based on your inputs (USA-focused accounts).
1. Your Profile & Assumptions
Before any taxes.
Combined federal/state for income reduction/Roth contribution cost.
For 401(k) withdrawals.
Enter the total dollar amount your employer would match annually if you contribute the earmarked amount (or up to their limit).
Important Assumptions for this Illustration
- This tool provides hypothetical illustrations for US-based accounts (Traditional 401(k), Roth IRA) and is NOT financial or tax advice.
- Tax laws (federal US), contribution limits, and investment returns are assumed constant. State taxes are not explicitly included unless factored into your marginal rates.
- **Traditional 401(k):** The "Earmarked Pre-Tax Income" is contributed directly. Growth is tax-deferred. Withdrawals are taxed at your "Retirement Tax Rate."
- **Roth IRA:** The "Earmarked Pre-Tax Income" is first taxed at your "Current Marginal Tax Rate." The remaining net amount is contributed. Growth and qualified withdrawals are tax-free.
- Annual contributions are assumed to be made at the start of each year.
- Actual 401(k) and Roth IRA contribution limits, income phase-outs, and specific plan rules are NOT considered. The tool assumes you are eligible to contribute the calculated amounts.
Annual Employer Match: ${formatCurrency(employerMatch)}
Total Growing Annually: ${formatCurrency(totalAnnual401kInvest)}
Projected Value at Retirement (Pre-Tax): ${formatCurrency(fv401kPreTax)}
Estimated Tax at Withdrawal (${formatPercent(retirementTaxRatePercent)}): ${formatCurrency(taxOn401kWithdrawal)}
Net Value After Tax: ${formatCurrency(net401kAtRetirement)}
`; rothIRAResultsEl.innerHTML = `Earmarked Pre-Tax Income: ${formatCurrency(earmarkedIncome)}
Taxes Paid Now (${formatPercent(currentTaxRatePercent)}): ${formatCurrency(earmarkedIncome * currentTax)}
Net Annual Post-Tax Contribution: ${formatCurrency(rothAnnualContribPostTax)}
Projected Value at Retirement (Tax-Free): ${formatCurrency(fvRoth)}
Net Value After Tax: ${formatCurrency(netRothAtRetirement)}
`; let summaryMessage = ""; if (netRothAtRetirement > net401kAtRetirement) { summaryMessage = `Based on your assumptions, the Roth IRA is projected to yield a higher net after-tax value by approximately ${formatCurrency(netRothAtRetirement - net401kAtRetirement)}.`; overallSummaryEl.style.backgroundColor = "var(--light-gray-color)"; overallSummaryEl.style.color = "var(--secondary-color)"; overallSummaryEl.style.border = "2px solid var(--secondary-color)"; } else if (net401kAtRetirement > netRothAtRetirement) { summaryMessage = `Based on your assumptions, the Traditional 401(k) is projected to yield a higher net after-tax value by approximately ${formatCurrency(net401kAtRetirement - netRothAtRetirement)}.`; overallSummaryEl.style.backgroundColor = "var(--light-gray-color)"; overallSummaryEl.style.color = "var(--tertiary-color)"; overallSummaryEl.style.border = "2px solid var(--tertiary-color)"; } else { summaryMessage = "Based on your assumptions, both options project a similar net after-tax value."; overallSummaryEl.style.backgroundColor = "var(--light-gray-color)"; overallSummaryEl.style.color = "var(--text-color)"; overallSummaryEl.style.border = "2px solid var(--text-color)"; } overallSummaryEl.innerHTML = summaryMessage; // Update or create chart if (comparisonChartInstance) { comparisonChartInstance.destroy(); } const chartLabels = Array.from({ length: years }, (_, i) => `Year ${i + 1}`); comparisonChartInstance = new Chart(chartCanvas, { type: 'line', data: { labels: chartLabels, datasets: [ { label: 'Traditional 401(k) (Net After-Tax)', data: data401kChart, borderColor: 'var(--tertiary-color)', backgroundColor: 'rgba(41, 128, 185, 0.1)', tension: 0.1 }, { label: 'Roth IRA (Net After-Tax)', data: dataRothChart, borderColor: 'var(--secondary-color)', backgroundColor: 'rgba(22, 160, 133, 0.1)', tension: 0.1 } ] }, options: { responsive: true, maintainAspectRatio: true, scales: { y: { beginAtZero: true, ticks: { callback: function(value) { return '$' + Math.round(value/1000) + 'k'; } } } }, plugins: { title: { display: true, text: 'Projected Net After-Tax Growth Comparison' }, tooltip: { callbacks: { label: function(context) { return context.dataset.label + ': ' + formatCurrency(context.parsed.y); } } } } } }); resultsSectionEl.style.display = 'block'; document.querySelector('html, body').scrollTop = resultsSectionEl.offsetTop - 20; // Prepare PDF content document.getElementById('pdfReportDate').textContent = `Report generated on: ${new Date().toLocaleDateString()}`; document.getElementById('pdfPreTaxIncomeToAllocate').textContent = `Annual Pre-Tax Income Earmarked: ${formatCurrency(earmarkedIncome)}`; document.getElementById('pdfCurrentAge').textContent = `Current Age: ${currentAge} years`; document.getElementById('pdfRetirementAge').textContent = `Planned Retirement Age: ${retirementAge} years`; document.getElementById('pdfInvestmentHorizon').textContent = `Investment Horizon: ${years} years`; document.getElementById('pdfAnnualReturn').textContent = `Expected Avg. Annual Return: ${formatPercent(annualRatePercent)}`; document.getElementById('pdfCurrentTaxRate').textContent = `Current Marginal Tax Rate: ${formatPercent(currentTaxRatePercent)}`; document.getElementById('pdfRetirementTaxRate').textContent = `Expected Retirement Tax Rate: ${formatPercent(retirementTaxRatePercent)}`; document.getElementById('pdfEmployerMatchMax').textContent = `Max Annual 401(k) Employer Match: ${formatCurrency(employerMatch)}`; const pdfAssumptionsUl = document.getElementById('pdfAssumptionsList'); pdfAssumptionsUl.innerHTML = assumptionsListForPdf.map(item => `