Tax Growth Comparison — Taxable vs 401k vs Roth
Compare after-tax growth. Taxable pays annual tax; 401k defers; Roth grows tax-free.
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Taxable = annual tax 401k = deferred Roth = tax-free Time amplifies
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Why: Tax-advantaged accounts save thousands over decades.
How: Enter initial, contribution, years, return, tax rates. See taxable vs 401k vs Roth.
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Growth Analysis
Investment Details
Pre-Withdrawal Balances
After-Tax Values
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Estimates only — not tax advice. Tax laws vary by jurisdiction. Consult a CPA or tax professional.
1. Key Takeaways
- • Taxable: Pay taxes annually on gains
- • Tax-Deferred: Grow tax-free, pay on withdrawal
- • Roth: Pay tax upfront, withdraw tax-free
- • Tax-advantaged compounds faster — time amplifies difference
2. Did You Know?
Taxable
Annual tax on dividends/gains
401k/IRA
Tax-deferred growth
Roth
Tax-free growth
Best Choice
Depends on rates
Diversify
Mix account types
Time
Amplifies advantage
3. How It Works
Taxable: After-tax return, cap gains at end. Tax-Deferred: Full growth, income tax on withdrawal. Roth: After-tax contributions, no tax on withdrawal.
4. Expert Tips
Prioritize tax-advantaged
401k match first, then IRA
Roth if young
Tax-free growth for decades
Diversify types
Tax diversification in retirement
Match to goals
Short vs long-term
5. Comparison Table
| Account | Contributions | Withdrawals |
|---|---|---|
| Taxable | After-tax | Cap gains tax |
| 401k/IRA | Pre-tax | Income tax |
| Roth | After-tax | Tax-free |
6. FAQ
Traditional = tax break now. Roth = tax-free later. Depends on bracket now vs retirement.
401k almost always wins due to tax-deferred growth.
After maxing tax-advantaged. Or for short-term goals.
7. Sources
- • IRS — Retirement Plans
- • IRS — Roth IRA
8. Quick Stats
Taxable
Annual tax
401k
Deferred
Roth
Tax-free
Time
Amplifies
9. Disclaimer
Disclaimer: Estimates only. Consult a financial advisor.
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