6 10. Benefits of traditional and Roth 401(k) plansTraditional 401(k) versus Roth 401(k)Larry has decided to contribute to a savings program. He can open a traditional 401(k) or a Roth 401(k) and has determined that he can afford a$15,600 contribution. Larry's salary is $130,500 per year, and he is in the 32% tax bracket.If Larry decides to go with a traditional 401(k), his contribution amount will be sAnd the amount offset via a reduced tax bill will be $If, instead, Larry decides to go with a Roth 401(k), his contnibution amount will be SAnd the amount offset via a reduced tax bill will be SAssuming all the same facts, suppose that Larry decides to open both 401(k) plans, splitting what he can afford to contribute equally between bothplans.Under this scenario, Larry's contribution amount will be SRoth 401(k)And the amount offset via a reduced tax bill will be STraditional 401(k)When Larry retires, which plan's monies will he be able to exclude from taxable income?

Pension plan contribution is limited to $19,500 in the year 2021.

Traditional 401(k) versus Roth 401(k) Larry has decided to contribute to a savings program. He can open a traditional 401(k) or a Roth 401(k) and has determined that he can afford a $15,600 contribution. Larry's salary is $130,500 per year, and he is in the 32% tax bracket. If Larry decides to go with a traditional 401(k), his contribution amount will be s And the amount offset via a reduced tax bill will be S I1, instead, Larry decides to go with a Roth 401(k), his contribution amount will be s And the amount offset via a reduced tax bill will be S Assuming all the same facts, suppose that Larry decides to open both 401(k) plans, spiting what he can afford to contribute equally between both plans Under this scenario, Larry's contribution amount will be S Roth 401(k) And the amount offset via a reduced tax bill will be S Traditional 401(k) When LamY