What is a Roth 401(k)?

Roth 401(k)s

Crunching the Numbers (Again!)

  • She will start working and contributing to her 401(k)s at the age of 25 and retire at 62.
  • Her starting salary will be $60,000.
  • Her salary will increase in real terms (after inflation) at 2.5% annually.
  • She is married.
  • She will contribute 10% of her income annually to 401(k)s.
  • Her employer will match up to 3% of her contributions.
  • Her investments will average 7% real growth annually (after inflation).
  • Her retirement expenses will be 75% of her pre-retirement income.
  • She will not have any additional income for retirement other than her 401(k)s.



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