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Subject:  Re: Roth Vs 401K (TSP) Excel? Date:  5/22/2001  9:56 PM
Author:  PMcMullenCT Number:  29856 of 88494

How do you quantify the cost-benefits analysis of a Roth versus TSP or 401K? ... For my purposes there are no available matching funds for the TSP (401K), and I am trying to weigh the benefits between the plans. I think I understand the basic qualitative differences. Is this similar to comparing regular vs. Roth?

If the investment options are comparable (same returns, same expenses) and your tax rates are the same now as they will be in retirement, the numbers will be the same.

Among the non monetary differences: If, when you retire, you don't need to take withdrawals, and wish to continue tax free growth past age 70 1/2 to pass a larger estate to your heirs, the Roth does not have required minimum withdrawals. A 401K will allow you to take loans against the plan balance, and has a higher contribution limit.
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