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10. Benefits of traditional and Roth 401(k) plans Traditional 401(k) versus Roth 401(k) Clancy has decided to contribute to a savings program. He can open

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10. Benefits of traditional and Roth 401(k) plans Traditional 401(k) versus Roth 401(k) Clancy has decided to contribute to a savings program. He can open a traditional 401(k) or a Roth 401(k) and has determined that he can afford a $15,600 contribution Clancy's salary is $130,500 per year, and he is in the 28% tax bracket If Clancy decides to go with a traditional 401(k), his contribution amount will be 5 And the amount offset via a reduced tax bill will be s If, instead, Clancy decides to go with a Roth 401(k), his contribution amount will be s And the amount offset via a reduced tax bill will be s Assuming all the same facts, suppose that Clancy decides to open both 401(k) plans, splitting what he can afford to contribute equally between both plans Under this scenano, Clancy's contribution amount will be Traditional 401(k) And the amount offset via a reduced tax bill will be s Roth 401(k) When Clancy retires, which plan's monies will he be able to exclude from taxable income? 10. Benefits of traditional and Roth 401(k) plans Traditional 401(k) versus Roth 401(k) Clancy has decided to contribute to a savings program. He can open a traditional 401(k) or a Roth 401(k) and has determined that he can afford a $15,600 contribution Clancy's salary is $130,500 per year, and he is in the 28% tax bracket If Clancy decides to go with a traditional 401(k), his contribution amount will be 5 And the amount offset via a reduced tax bill will be s If, instead, Clancy decides to go with a Roth 401(k), his contribution amount will be s And the amount offset via a reduced tax bill will be s Assuming all the same facts, suppose that Clancy decides to open both 401(k) plans, splitting what he can afford to contribute equally between both plans Under this scenano, Clancy's contribution amount will be Traditional 401(k) And the amount offset via a reduced tax bill will be s Roth 401(k) When Clancy retires, which plan's monies will he be able to exclude from taxable income

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