7 10. Benefits of traditional and Roth 401(k) plans Traditional 401(k) versus Roth 401(k) Sean 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 $14,400 contribution. Seans salary is $106,500 per year, and he is in the 28% tax bracket. If Sean decides to go with a traditional 401(k), his contribution amount will be $ . And the amount offset via a reduced tax bill will be $ . If, instead, Sean decides to go with a Roth 401(k), his contribution amount will be $ . And the amount offset via a reduced tax bill will be $ . Assuming all the same facts, suppose that Sean decides to open both 401(k) plans, splitting what he can afford to contribute equally between both plans. Under this scenario, Seans contribution amount will be $ . And the amount offset via a reduced tax bill will be $ . When Sean retires, which plans monies will he be able to exclude from taxable income? Roth 401(k)