Elite Preview
401(k) vs IRA is an Elite-only planning tool. Free and Pro users can view the preview only.
401(k) vs IRA
Compare employer match, contribution limits, tax savings, Roth flexibility, and projected retirement value.
Best Next Dollar
Traditional 401(k)
Based on match capture, tax rates, IRA preference, and projected value.
Projected Combined Value
$1,824,395
401(k) + IRA projection over 25 years at 8.0% expected return.
Priority Snapshot
This compares the value of 401(k) match capture, IRA contribution room, and tax-rate assumptions.
Match Captured
100%
401(k) Annual
$12,350
Employee contribution + employer match.
IRA Annual
$7,500
Limited by age and earned income.
Tax Savings Today
$2,280
Estimated 401(k) pre-tax savings.
Employer Match
$2,850
Extra annual value from employer contributions.
Comparison Inputs
Enter income, contribution, match, and tax assumptions.
Tax Advantage Comparison
Compare pre-tax 401(k) value against Roth IRA-style after-tax flexibility.
Projected Growth
$1,273,645
Projected 401(k)
$1,190,494
Pre-tax projected value before retirement taxes.
Projected IRA
$633,900
Projected IRA value based on your inputs.
IRA vs 401(k) Gap
-$342,305
Roth-style IRA value minus after-tax 401(k) estimate.
Recommendation Summary
A simple priority order based on your current inputs.
Suggested next priority
Traditional 401(k)
Your current tax rate is meaningfully higher than your expected retirement tax rate, so additional pre-tax 401(k) contributions may be attractive after the match.
Step 1: Capture the match
The employer match is usually the first priority because it adds extra retirement money on top of your own contributions.
Step 2: Choose tax treatment
Use Traditional when today’s tax rate is meaningfully higher. Use Roth when future tax rates or flexibility matter more.
Step 3: Fill the better account
After the match, compare IRA flexibility and investment options against the higher 401(k) contribution room.
Step 4: Use both when possible
Many strong plans use both accounts: enough 401(k) for match, IRA for flexibility, then more 401(k) for larger savings.
Limit Snapshot
2026 planning limits used in this calculator.
401(k) Limit
$24,500
Employee deferral limit including catch-up.
IRA Limit
$7,500
Roth + Traditional IRA combined.
401(k) Over Limit
Low
Estimated excess employee deferral.
IRA Over Limit
Low
Estimated excess IRA contribution.
Educational content only — not financial advice.