Your current age.
The annual salary and any pay bonuses you are currently receiving. This value is projected through retirement age and used for calculating future annual 401(k) plan contributions.
The amount you contribute — and the earnings those contribute generate — are instrumental in determining your account balance at retirement. We'll use that balance to analyze the amount you can withdraw annually during retirement.
The age at which you expect to retire.
Earnings from a Roth 401(k) are distributed free of federal income tax if IRS regulations are met. The longer you expect to be retired, the longer you'll be able to take advantage of this Roth 401(k) advantage.
The expected annual growth rate of your income. This growth rate will be applied to your income each year until your retirement age and is used to estimate future 401(k) contributions.
The federal tax rate that is applied at your current income level. Although taxes are typically computed using a composite of several rates, the highest rate applied at your income level is used for simplicity. Both the traditional 401(k) and the Roth 401(k) offer tax advantages. But those advantages are different - and very much depend on what you think your tax situation will be upon retirement. Is there an element of guesswork here? Certainly. No one can know for sure what their tax situation will be in the future - or how the tax laws themselves may be changed. Use the Roth 401(k) analyzer to perform "What if" scenarios at different tax rates.
The federal tax rate that you expect during your retirement. Both the traditional 401(k) and the Roth 401(k) offer tax advantages. But those advantages are different - and very much depend on what you think your tax situation will be upon retirement. Is there an element of guesswork here? Certainly. No one can know for sure what their tax situation will be in the future - or how the tax laws themselves may be changed. Use the Roth 401(k) analyzer to perform "What if" scenarios at different tax rates.
The rate of return you expect your 401(k) account to earn prior to your retirement. Your rates will vary depending on your tolerance for risk with the highest risk investments usually generating the highest return.
The rate of return you expect to earn after your retirement. Most experts suggest a more conservative investment strategy during retirement, which may provide a lower expected rate of return during your retirement than you were achieving before your retirement.
This is the annual income you expect to receive during retirement. Most financial advisors suggest that 70%-80% of current salary levels is adequate for retirement.
The state tax rate that is applied at your current income level.
The state tax rate that you expect during your retirement.
The amount you contribute – and the earnings made on those contributions – is what determines your account balance at retirement. We'll use that balance to come up with an amount you can withdraw annually during retirement.
Earnings from your Roth are withdrawn tax free, meaning you won't have to pay federal income tax, as long as IRS rules are met; and the longer you expect to be retired, the longer you'll be able to take advantage of this Roth benefit.
Most experts suggest a more conservative investment strategy during retirement, which may provide a lower expected rate of return during your retirement than you were achieving before your retirement.
Although taxes are typically computed using a composite of several rates, the highest rate applied at your income level is used for simplicity. Both the traditional 401(k) and Roth offer tax advantages. But those advantages are different – and very much depend on your tax situation upon retirement. Is there an element of guesswork? Certainly, No one can know for sure what their tax situation will be in the future. Use the calculator to run different 'What-if' scenarios at different tax rates to compare results.
John Hancock

Roth 401(k) Calculator

 

What are Roth contributions?

Contribution refers to the money deducted from your paycheck and invested into your retirement plan. Some retirement plans permit you to choose the tax treatment of those contributions to best suit your needs. Roth contributions are after-tax deductions and if your plan allows, you can choose none, some, or all your plan contributions to be Roth, up to your plan's contribution limit.

Unlike traditional pre-tax contributions (sometimes called traditional 401(k) contributions), Roth contributions are deducted from your paycheck after the tax has been calculated and deducted. This means they are 'after-tax' contributions/deductions. Then, when you retire, your Roth contributions and earnings on those contributions are paid out tax free, as long as your money has been invested at least five years*. This might be an attractive option if you expect to have a higher tax rate in retirement.

Contributing to Roth is a decision you’ll need to make based on your own personal circumstances, such as:

  • Your income
  • Your current and retirement age
  • Your investment returns, before and during retirement
  • Your current tax rates and your expected tax rates during retirement
  • Your expected financial needs when you retire
  • Your expected sources of retirement income
To see how some of these factors come together, try out the Roth calculator below. Click the 'Analyze' button to compare your results. Local taxes, insurance and other benefit plan deductions are not included in this analysis.

Input - Analysis Information

Income
Your current income:
Current contribution rate:
Expected salary growth rate: %
Age
Your current age:
Your retirement age:
Years in retirement:  Click to estimate your years in retirement using IRS life expectancy tables.
Investments
Your rate of return – before retirement: %
Your rate of return – during retirement: %
Taxes
 
Your current tax rates:		 Federal State
Your tax rates during retirement:
 
Keep my take-home pay the same1
Keep my 401(k) savings the same2
Hypothetical examples in the calculator do not reflect the impact of actual expenses to which an investment would be subject. If such expenses were reflected, the results shown would be lower.
 
 

*Only applies to qualified distributions, which means the money is withdrawn when you're at least 59 1/2 years old, or due to death or disability, and you've held Roth contributions in your account for at least five years (some exceptions apply).

1Since Roth 401(k) contributions are made on an after-tax basis, you will be required to contribute more to achieve an equivalent level of savings when compared to a traditional 401(k). This analysis option assumes that the pretax amount allocated to your Roth 401(k) savings is equivalent to your traditional 401(k) contribution, meaning your actual Roth 401(k) contribution is less, depending on your tax rate.
2Since Roth 401(k) contributions are made on an after-tax basis, you will be required to contribute more to achieve an equivalent level of savings when compared to a traditional 401(k). This analysis option assumes that you are able to contribute equal amounts to your traditional and Roth 401(k) accounts on an after-tax basis. Depending on your tax rate, your Roth 401(k) contribution needed to achieve an equal savings level may be significantly higher than your traditional 401(k) contribution.

This Roth 401(k) Calculator is based on federal income tax laws and regulations as they existed on January 1, 2024. Such federal laws and regulations may be subject to change in the future. In addition, this Roth 401(k) Calculator does not take into account the income tax treatment of Roth 401(k) contributions and distributions by a State. For information regarding such treatment, please consult your tax or financial advisor. Information provided by the Roth 401(k) Calculator is for illustrative purposes only and does not, and is not intended to, constitute legal or tax advice. It is also not intended to be used, and cannot be used, to avoid tax-related penalties. Hypothetical examples in the calculator do not reflect the impact of actual expenses to which an investment would be subject. If such expenses were reflected, the results shown would be lower.

The Roth 401(k) Calculator should not be relied upon exclusively to decide whether to make traditional pretax 401(k) contributions or Roth 401(k) contributions. Individual circumstances play a significant role in making the best decision. Therefore, you should seek individualized advice from your own independent tax advisor.

The Roth 401(k) Calculator is made available as is, with all faults and without any express or implied representations, warranties, or guarantees regarding its use or data and decisions related to its use, including, but not limited to, any implied warranty of merchantability, performance, fitness for a particular purpose, accuracy of informational content, or absence of defects or errors. By using the Roth 401(k) Calculator, you agree that, except as otherwise required by law, SS&C, John Hancock Retirement Plan Services LLC and each of its affiliates, your Plan trustee, and your Plan recordkeeper will not be liable for any losses or damages (direct, indirect or punitive) that may result from your use of the Roth 401(k) Calculator or any data and decisions related to its use.

The content of this website is for general information only and is believed to be accurate and reliable as of posting date but may be subject to change. John Hancock does not provide investment, tax or legal advice. Please consult your own independent advisor as to any investment, tax, or legal statements made herein.

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