10. Benefits of traditional and Roth 401(k) plans Troditional 401(k) versus Roth 401(k) Felix 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. Felix's salary is $130,500 per year, and he is in the 28% tax bracket: If Felix decides to go with a troditional 401(k), his contribution amount will be And the amount offset via a reduced tax bill will be If, instead, Felix decides to go with a Roth 401(k), his contribution amount will be And the amount offset vis a reduced tax bal will be Assuming all the same facts, suppose that Felix decides to open both 401(k) plans, splitting what he can afford to contribute equally between both plans: Under this scenario, Felor's contribution amount wia be And the amount olfset via a reduced tax bill will be When Felix retires, which plan's monies will he be able to exclude from taxable income