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Roth vs Traditional 401(k)?

A 401(k) contribution can be an effective retirement tool. As of January 2006, there is a new type of 401(k) - the Roth 401(k). The Roth 401(k) allows you to contribute to your 401(k) account on an after-tax basis - and pay no taxes on qualifying distributions when the money is withdrawn. For some investors, this could prove to be a better option than contributing on a pre-tax basis, where deposits are subject to taxes when the money is withdrawn. Use this calculator to help determine the best option for your retirement.

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What are the differences between IRAs for retirement?

Traditional IRA's are tax deductible where as Roth IRA's are never deductible. You can read up on the differences at http://www.fool.com/investing/general/step-3-roth-vs-traditional-ira.aspx


What are the differences between contributing to a traditional 401k before tax vs a Roth 401k?

Contributing to a traditional 401k before tax means you don't pay taxes on the money you put in now, but you will pay taxes on the withdrawals in retirement. Contributing to a Roth 401k means you pay taxes on the money you put in now, but withdrawals in retirement are tax-free.


Where can I find an IRA Calculator on the internet?

Use the calculator at Traditional IRA Calculator. Plug in your starting balance, current age, adjusted gross income, etc and press calculate. There is a Traditional vs Roth IRA calculator at State Farm Insurance.


Where might one find detailed information as to a Roth IRA vs a 401k?

One might find detailed information as to a Roth IRA vs a 401k at Schwab's website. Schwab offers a lot of pros and cons of having either a 401k or a Roth IRA.


Roth 401(k) vs. Traditional 401(k) and your Paycheck?

Roth 401(k) vs. Traditional 401(k) and your Paycheck A 401(k) can be an effective retirement tool. As of January 2006, there is a new type of 401(k) contribution. Roth 401(k) contributions allow you to contribute to your 401(k) account on an after-tax basis and pay no taxes on qualifying distributions when the money is withdrawn. For some investors this could prove to be a better option than the Traditional 401(k) contributions, where deposits are made on a pre-tax basis, but are subject to taxes when the money is withdrawn. Use this calculator to help determine the option that could work for you and how it might affect your paycheck.


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