Traditional 401(K) Or Roth 401(K) Calculator

Definitions

Current age

Your current age.

Age of retirement

Age you wish to retire. This calculator assumes that the year you retire, you do not make any contributions to your 401(k). So if you retire at age 65, your last contribution occurs when you are actually 64.

Annual contribution

The amount you will contribute to a 401(k) each year. This calculator assumes that you make 12 equal contributions throughout the year at the beginning of each month. The annual maximum for 2017 is $18,000. If you are age 50 or over, a "catch-up" provision allows you to contribute even more to your 401(k). Employees age 50 or over can deposit an additional $6,000 into their 401(k) account. It is also important to note that employer contributions do not affect an employee's maximum annual contribution limit. Both the annual maximum and "catch-up" provisions are indexed for inflation.

It is important to note that 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. If you expect your salary to be $120,000 or more in 2017 or was $120,000 or more in 2016, you may need to contact your employer to see if these additional contribution limits apply to you.

Invest traditional tax-savings

Check this box to invest any tax savings generated by contributions to a traditional 401(k). By investing your tax savings each year, you equalize the total cash flow between the two account types. For example, if you have a 25% income tax rate and contribute $1,000 to your retirement account, the actual cost after taxes would be $750 for the traditional contribution and $1,000 for the Roth contribution. If you do not wish to invest the difference, you are actually "spending" more per year with the Roth option and the end result will greatly favor a Roth-type savings plan. You may wish to leave this box unchecked if you have no ability or desire to create an additional investment account outside of your 401(k).

Maximize contributions

Check this box to increase all contributions to the maximum allowed each year. This will include future years that qualify for catch-up contributions. The annual maximum for 2017 is $18,000. When you reach age 50 or over, a "catch-up" provision increases the maximum by an additional $6,000.

Expected rate of return

The annual rate of return for your 401(k) account. This calculator assumes that your return is compounded annually and your deposits are made monthly. The actual rate of return is largely dependent on the types of investments you select. The Standard & Poor's 500® (S&P 500®) for the 10 years ending December 31^st 2016, had an annual compounded rate of return of 6.6%, including reinvestment of dividends. From January 1, 1970 to December 31^st 2016, the average annual compounded rate of return for the S&P 500®, including reinvestment of dividends, was approximately 10.3% (source: www.standardandpoors.com). Since 1970, the highest 12-month return was 61% (June 1982 through June 1983). The lowest 12-month return was -43% (March 2008 to March 2009). Savings accounts at a financial institution may pay as little as 0.25% or less but carry significantly lower risk of loss of principal balances.

It is important to remember that these scenarios are hypothetical and that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are generally subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment. It is not possible to invest directly in an index and the compounded rate of return noted above does not reflect sales charges and other fees that Separate Account investment funds and/or investment companies may charge.

Current tax rate

The current marginal income tax rate you expect to pay on your taxable investments. Use the table below to assist you in determining your current tax rate. Use the table below to assist you in estimating your federal tax rate.

Filing Status and Income Tax Rates 2017^*

Tax Rate	Married Filing Jointly or Qualified Widow(er)	Single	Head of Household	Married Filing Separately
10%	$0 - $18,650	$0 - $9,325	$0 - $13,350	$0 - $9,325
15%	$18,650 - $75,900	$9,325 - $37,950	$13,350 - $50,800	$9,325 - $37,950
25%	$75,900 - $153,100	$37,950 - $91,900	$50,800 - $131,200	$37,950 - $76,550
28%	$153,100 - $233,350	$91,900 - $191,650	$131,200 - $212,500	$76,550 - $116,675
33%	$233,350 - $416,700	$191,650 - $416,700	$212,500 - $416,700	$116,675 - $208,350
35%	$416,700 - $470,700	$416,700 - $418,400	$416,700 - $444,550	$208,350 - $235,350
39.6%	Over $470,700	Over $418,400	Over $444,550	Over $235,350
*Caution: Do not use these tax rate schedules to figure 2016 taxes. Use only to figure 2017 estimates. Source: Rev. Proc. 2016-55

Retirement tax rate

The marginal tax rate you expect to pay on your investments at retirement.

After tax total at retirement

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 deductible contributions and 2) what you would have earned if you had invested (in an ordinary taxable account) any income tax savings.