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Traditional vs Roth Calculator

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Contributions to a Traditional 401(k) or individual retirement accounts are made on a pre-tax basis, resulting in a lower tax bill, and higher take-home pay. Contributions made to a Roth 401(k) or IRA are made on an after-tax basis, which means that taxes are paid on the amount contributed in the current year. The reverse is true once you are eligible to make withdrawals. Withdrawals from Traditional plans are taxable, while those made from a Roth are not.