Traditional 401(k) vs Roth 401(k) 2026
Pre-tax vs after-tax 401(k): which saves you more? Compare with 2026 $24,500 limit.
— OBBBA rates
| Feature | Traditional 401(k) | Roth 401(k) |
|---|---|---|
| Contributions | Pre-tax (reduces current taxable income) | After-tax (no current tax break) |
| 2026 employee limit | $24,500 | $24,500 |
| Catch-up (50+) | $8,000 | $8,000 |
| Super catch-up (60-63) | $11,250 | $11,250 |
| Tax on withdrawals | Taxed as ordinary income | Tax-FREE |
| Employer match | Always pre-tax | Match goes to pre-tax bucket |
| RMDs | Required at 73 | Required at 73 (can roll to Roth IRA) |
| Best for | High earners expecting lower future bracket | Younger workers expecting higher future bracket |
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