Benefits of traditional and Roth $401(k)$ plans

Traditional $401($k$)$ versus Roth $401(k)$

Crystal 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 $$15,600$ contribution. Crystal's salary is $$130,500$ per year, and she is in the $28\%$ tax bracket.

If Crystal 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, Crystal 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 Crystal decides to open both $401(k)$ plans, splitting what she can afford to contribute equally between both plans.

Under this scenario, Crystal's contribution amount will be $$

And the amount offset via a reduced tax bill will be $$

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