10. Benefits of traditional and Roth 401(k) plans Traditional 401(k) versus Roth 401(k) Poornima has decided to contribute to a savings program. She can open a traditional 401(k) or a Roth 401(k) and has determined that she can afford a $15,600 contribution. Poornima's salary is $130,500 per year, and she is in the 32% tax bracket. If Poornima decides to go with a traditional 401(k), her contribution amount will be And the amount offset via a reduced tax bill will be If, instead, Poornima decides to go with a Roth 401(k), her contribution amount will be And the amount offset via a reduced tax bill will be Assuming all the same facts, suppose that Poornima decides to open both 401(k ) plans, splitting what she can afford to contribute equally between both plans. Under this scenario, Poornima's contribution amount will be And the amount offset via a reduced tax bill will be When Poornima retires, which plan's monies will she be able to exclude from taxable income