🎯 401(k) & IRA Retirement Calculator
How to Use the Retirement Calculator for 401k and Roth IRA
To use the retirement calculator, enter your current age, desired retirement age, and your current savings balances for 401k and Roth IRA accounts. Then, specify your annual contribution amounts and expected rate of return. The calculator will estimate your total savings at retirement.
Retirement Calculator for 401k and Roth IRA
Planning for retirement is crucial to ensure a secure future. A 401k and Roth IRA are two popular retirement savings options. Our calculator can help you estimate your potential savings by the time you retire.
Understanding 401k
A 401k is a employer-sponsored retirement account that allows you to contribute pre-tax income. Employers might also offer matching contributions which can significantly boost your savings.
Understanding Roth IRA
A Roth IRA is a individual retirement account where you contribute after-tax income. The benefit is that withdrawals in retirement are tax-free, providing flexibility in managing your retirement income.
FAQ
What is the difference between 401k and Roth IRA?
The main difference is in tax treatment. 401k contributions are pre-tax, lowering your taxable income now, while Roth IRA contributions are made with after-tax dollars, allowing for tax-free withdrawals later.
Can I have both a 401k and a Roth IRA?
Yes, you can contribute to both a 401k and a Roth IRA, allowing you to maximize your retirement savings and benefit from both tax advantages.