In a hypothetical scenario where two individuals invest $5,000 annually for 30 years at a 6% annual return, the individual using a tax-free account (like a Roth 401(k)) would accumulate $395,291, while the individual using a taxable account (assuming a 28% tax rate) would accumulate $295,896, resulting in a difference of $99,395.

Authors

• Person: Not available Organization: NASA Federal Credit Union
  The Benefits of Tax-Advantaged Savings Vehicles

Sources

• The Benefits of Tax-Advantaged Savings Vehicles www.nasafcu.com NASA Federal Credit Union via serper

Referenced by nodes (1)

• taxable account concept