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Investment

Taxable vs. Tax-Deferred Savings

For years, people have been told to take advantage of company-sponsored plans when saving for retirement. And while that's generally good guidance—especially if the company does some form of matching contribution—it can get tricky the closer you get to retirement. This calculator can help you start to see the pros and cons of taxable and tax-deferred accounts.

Tax-Deferred Account

Enter your expected contributions and returns for a tax-deferred retirement account (like a Traditional IRA or 401(k)).

These are example values. Update them to reflect your personal situation.

$
$0$50,000
years
%

Taxable Account

Enter your expected contributions and returns for a taxable investment account (like a brokerage account).

$
$0$50,000
years
%

For years, people have been told to take advantage of company-sponsored plans when saving for retirement. And while that's generally good guidance—especially if the company does some form of matching contribution—it can get tricky the closer you get to retirement. This calculator can help you start to see the pros and cons of taxable and tax-deferred accounts.

Your Results

Entering retirement with multiple sources of income can help some, but it may not be a best fit for all. What's best for you will depend on a variety of factors, including when you're considering drawing Social Security benefits.

Difference in After-Tax Value
$0
Tax-deferred account leaves you with more after taxes.

Tax-Deferred Account Results

Future Value (Pre-Tax)
$0
Future Value (After-Tax)
$0

Taxable Account Results

Future Value (After-Tax)
$0

These figures are estimates based on the information you provided. Actual results may vary based on market performance, tax law changes, and your specific financial situation. Estimates only — not financial advice.

 

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