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Many employers have added an entrée to their retirement benefits menu, offering a Roth 401(k) as well as a Traditional 401(k). What’s the difference? Employees contribute pre-tax dollars to a Traditional 401(k), but the money does get taxed when it’s eventually distributed. In contrast, a Roth 401(k) is funded with post-tax dollars, but retirees pay no additional taxes years later when they access the funds. Enter your salary and retirement savings goals into this calculator to see which choice you find more appetizing.
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