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Ana 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
Ana 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 $12,000 contribution. Anas salary is $58,500 per year, and she is in the 24% tax bracket. If Ana 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, Ana 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 Ana decides to open both 401(k) plans
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