Question: Traditional 4 0 1 ( k ) versus Roth 4 0 1 ( k ) Sharon has decided to contribute to a savings program. She

Traditional 401(k) versus Roth 401(k)
Sharon 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. Sharon's salary is $58,500 per year, and she is in the 25% tax bracket.
If Sharon 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, Sharon 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 Sharon decides to open both 401(k) plans, splitting what she can afford to contribute equally between both
plans.
Under this scenario, Sharon's contribution amount will be
And the amount offset via a reduced tax bill will be
When Sharon retires, which plan's monies will she be able to exclude from taxable income?
 Traditional 401(k) versus Roth 401(k) Sharon has decided to contribute to

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