Contributing pretax money to your company’s retirement plan offers you several benefits, including tax-deferred growth potential and reduced current income taxes.

Your contributions to your retirement plan, changes to your filing status and the number of allowances you claim all affect your take-home pay. Use this calculator to see how changing your pretax retirement plan contributions could affect your paycheck. This calculator does not take state and local taxes into account; the results are only an estimate. Your paycheck contains much of the information that is required by this analyzer.

Definitions

Pay period
How frequently you get paid.
Filing status
Your income tax filing status. Select “Married” if you are married or filing as the head of household. Select “Single” if you are single, or married but filing separately.
Gross pay per period
The amount of pay you receive per pay period before any deductions.
Number of allowances
You may claim allowances to reduce the amount of federal income tax withheld from your paycheck. Each allowance you claim is equal to $4,000 of income that you expect to have in deductions when you file your annual tax return. The number of allowances you claim is based on the number of dependents you have and on your itemized deductions.
Pretax deductions
Payments that are automatically deducted from your pretax income for certain employer-sponsored benefits (other than retirement plans). These might include health care reimbursements, for example.
Post-tax deductions
Payments that are automatically deducted from your after-tax income for certain employer-sponsored benefits. These might include life insurance or employer stock purchases, for example.
Post-tax reimbursements
Reimbursements made by your employer after taxes have been taken out, such as business expense reimbursements.
Salary deferral contribution to retirement plan
The percentage of your pretax pay that you contribute into a retirement account, such as a 401(k) or 403(b). While making pretax retirement plan contributions does lower your take-home pay, it also lowers your current federal income taxes. The amount you contribute toward your retirement plan will be greater than the reduction in your paycheck. The maximum salary deferral contribution to a 401(k) or 403(b) plan in 2015 is $18,000, or $24,000 for individuals age 50 and older. This calculator allows you to deduct up to 80% of your pay, but you should check with your plan sponsor about your plan’s provisions.
Federal tax withholding calculations

Federal income tax withholdings are calculated by:

  1. Multiplying gross pay by the number of pay periods per year to compute your annual salary.
  2. Subtracting the value of allowances allowed (for 2015, this is $4,000 multiplied by the number of withholding allowances claimed).
  3. Determining your annual tax by using the single or married rate tables below.
  4. Dividing the amount of tax by the number of pay periods per year to arrive at the amount of federal withholding tax to be deducted per pay period.
Single withholding rates for 2015*
Annual taxable income between these amounts Annual withholding Withhold additional % of income over this amount
$0–$2,300 $0.00 0% $0
$2,301–$11,525 $0.00 10% $2,300
$11,526–$39,750 $922.5 15% $11,525
$39,751–$93,050 $5,156.25 25% $39,750
$93,051–$191,600 $18,481.25 28% $93,050
$191,601–$413,800 $46,075.25 33% $191,600
$413,801–$415,500 $119,401.25 35% $413,800
$415,501 and over $119,996.25 39.6% $415,500
Married withholding rates for 2015*
Annual taxable income between these amounts Annual withholding Withhold additional % of income over this amount
$0–$8,600 $0.00 0% $0
$8,601–$27,050 $0.00 10% $8,600
$27,051–$83,500 $1,845.00 15% $27,050
$83,501–$159,800 $10,312.50 25% $83,500
$159,801–$239,050 $29,387.50 28% $159,800
$239,051–$420,100 $51,577.50 33% $239,050
$420,101–$473,450 $111,324.00 35% $420,100
$473,451 and over $129,996.50 39.6% $473,450

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional or downloaded and should be read carefully before investing.