401(k) and your paycheck: |
Balances at Retirement |
Your current age.
Age you wish to retire.
The current marginal income tax rate you expect to pay on your taxable income. Use the ‘Filing Status and Federal Income Tax Rates on Taxable Income’ table to assist you in estimating your federal tax rate.
| Tax Rate | Married Filing Jointly or Qualified Widow(er) | Single | Head of Household | Married Filing Separately |
|---|---|---|---|---|
| 10% | $0 - $23,850 | $0 - $11,925 | $0 - $17,000 | $0 - $11,925 |
| 12% | $23,850 - $96,950 | $11,925 - $48,475 | $17,000 - $64,850 | $11,925 - $48,475 |
| 22% | $96,950 - $206,700 | $48,475 - $103,350 | $64,850 - $103,350 | $48,475 - $103,350 |
| 24% | $206,700 - $394,600 | $103,350 - $197,300 | $103,350 - $197,300 | $103,350 - $197,300 |
| 32% | $394,600 - $501,050 | $197,300 - $250,525 | $197,300 - $250,500 | $197,300 - $250,525 |
| 35% | $501,050 - $751,600 | $250,525 - $626,350 | $250,500 - $626,350 | $250,525 - $375,800 |
| 37% | Over $751,600 | Over $626,350 | Over $626,350 | Over $375,800 |
| *Caution: Do not use these tax rate schedules to figure 2024 taxes. Use only to figure 2025 estimates. Source: Rev. Proc. 2024-40 | ||||
The marginal federal income tax rate you expect to pay on your retirement account distributions. Keep in mind that the calculator does not factor in other taxes such as state taxes, which could affect the comparison.
The hypothetical annual effective rate of return for your 401(k) account. This calculator assumes that your deposits are made at the beginning of each pay period. For annual pay frequencies, it assumes the contributions are made at the beginning of the year. The actual rate of return is largely dependent on the type of investments you select.
It is important to remember that future rates of return can't be predicted and that investments that have a higher return potential are subject to higher risk and volatility. The actual rate of return on investments can vary widely over time. This includes the potential loss of principal on your investment.
This is your current annual income.
The amount you expect to contribute to a 401(k) each year. This calculator assumes that new contributions to your account are made until you reach your retirement age. If you are currently age 29 and expect to retire at age 65, your first new contribution will happen at age 30 and continue until through age 65.
The annual maximum for 2025 is $23,500 (the Code Section 402(g) limit). If you are age 50 or over, a 'catch-up' provision allows you to contribute even more to your 401(k) account, provided your employer's plan allows catch-up contributions. In 2025, the 'catch-up' provision allows you to contribute an additional $7,500 into your account. Beginning in 2025 the SECURE 2.0 Act increases the catch-up contribution for individuals age 60 to 63. For 2025, this is $11,250 instead of $7,500.
Beginning in 2026, subject to pending IRS rules and clarification, catch-up contributions must be made as Roth contributions for individuals making more than $145,000 (adjusted for inflation) in the previous year. The current calculator does not impact of the Roth requirement which is subject to pending IRS rule finalization and clarification. It is also important to note that employer contributions will not count towards the employee's annual contribution limit under Code Section 402(g). Both the annual maximum and 'catch-up' provisions are indexed for inflation. Your plan may also impose limits on how much you can contribute.
Some employees are subject to another form of contribution limits. Employees classified as 'Highly Compensated' may be subject to contribution limits based on their employer's overall 401(k) participation. You may need to contact your employer to see if these additional contribution limits apply to you.
This is either Roth or Traditional. If you choose 'Roth' the calculator will increase the assumed contribution to your 'Traditional' option to equal the same net take home pay. If you choose 'Traditional' the calculator will decrease the assumed contribution to your 'Roth' option to equal the same net take home pay.
How often you are paid. The tool uses this entry to calculate the net impact on your paycheck.
There are two requirements to take a qualified distribution from a Roth 401(k) account. A qualified distribution is one that is taken (i) at least five tax years from the year of your first Roth 401(k) contribution; and (ii) on or after the date on which you reach age 59 1/2 (or upon disability or death).
For the Roth 401(k), this is the total value of the account. For the traditional 401(k), this is the sum of two parts: 1) The value of the account after you pay income taxes on all earnings and tax-deferred contributions and 2) The accumulated value of the income tax savings of any contributions that exceeded your 401(k) contribution limit, if any, if you invested them as after-tax contributions to a tax-deferred vehicle. For these earnings, distributions are taxed at the same tax rate you indicate in the Retirement tax rate.
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