Roth 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contribute to your 401(k) account on an after-tax basis and pay no taxes on qualifying distributions when the money is withdrawn.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401(k) contributions, where deposits are made on a pre-tax basis, but are subject to taxes when the money is withdrawn.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.


This information is provided by American General Life Insurance Company (AGL) and The United States Life Insurance Company in the City of New York (US Life), members of American International Group, Inc. (AIG).

Interactive calculators are made available as self-help tools for independent use and are not intended to provide investment or tax advice, either express or implied. AGL and US Life cannot and do not guarantee their applicability or accuracy. All results are hypothetical representations for illustrative purposes only. Questions regarding this information should be discussed with your attorney, tax advisor or accountant.

To ensure compliance with requirements imposed by U.S. Treasury Regulations, we inform you that any tax advice contained in this document (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

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