Tax Impact Calculator
Compare how different account types affect your investment returns and discover potential tax savings.
Investment & Tax Details
Tax Rates
Federal brackets: 10%, 12%, 22%, 24%, 32%, 35%, 37%
Expected tax rate during retirement
Rates: 0%, 15%, or 20%
Taxable Brokerage Account
Pay taxes on dividends yearly + capital gains at withdrawal
Tax-Deferred (Traditional 401k/IRA)
No taxes during growth, pay income tax on withdrawals
Tax-Free (Roth IRA/401k)
Pay taxes upfront, no taxes on growth or withdrawals
Key Insights
Tax-Deferred accounts are often best when you expect to be in a lower tax bracket during retirement.
Roth (Tax-Free) accounts excel when you're currently in a lower tax bracket or expect higher rates in retirement.
Taxable accounts offer flexibility (no withdrawal penalties) but are generally less tax-efficient for long-term growth.
A diversified approach using multiple account types often provides the most flexibility for tax planning in retirement.
Important: This calculator provides simplified estimates for comparison purposes. Actual tax implications vary based on individual circumstances, state taxes, income levels, and tax law changes. Consult with a tax advisor or financial planner for personalized guidance.