According to the announcement, The Roth Retirement Plan Analyzer will help 401(k) participants understand if the Roth option is right for them. Participants can input their income, age, and existing assets, and perform “what if” scenarios using different tax rates to determine outcomes of choosing the Roth option.
After completing their Roth analysis, participants can use the tool’s Gap Analyzer to help compare traditional 401(k) savings to Roth 401(k) contributions and determine whether they are on track with retirement savings that will provide lifelong income, the announcement said.
In addition, the tool provides an easy-to-understand overview of the Roth 401(k), and some rules of thumb for assessing who may benefit from the Roth feature.
The online calculator is an addition to the Roth education offerings introduced by Nationwide in December (See Nationwide Joins List of Roth Ready ).