Spend It or Save It Calculator
There are several ways to manage your retirement assets when you leave your company. This calculator will help you compare the effects of taxes and penalties on the taxable portion of a full distribution vs. continuing to allow it to grow tax-deferred, such as in a rollover IRA.
Enter your information in the fields and click on Calculate to see your results.
- Current retirement plan balance
- The current tax-deferred amount you have in your retirement plan.
- Hypothetical annual rate of return
- The expected annual return on your investments. Since 1926, the average annual total return for the S&P 500, an unmanaged index of large U.S. stocks, has been about 10%. Investments that offer the potential for higher rates of return also come with a higher degree of risk. If you plan on withdrawing your money within a short period of time, such as five years, you may want to choose a more conservative rate of return. This calculator assumes that your return is compounded annually and there are no new contributions to this account. Hypothetical rates of return are for illustrative purposes only and are not intended to portray actual results. Actual rates of return will vary over time. Past results are not predictive of results in future periods.
- Current age
- Your current age.
- Age at retirement
- The age at which you plan to retire.
- Federal income tax rate
The marginal federal tax rate you expect to pay on any additional earnings or taxable distributions. Use the table below to estimate your current tax rate.
Filing status and income tax rates for 2017
This information is subject to change by the IRS.
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% $18,651–$75,900 $9,326–$37,950 $13,351–$50,800 $9,326–$37,950 25% $75,901–$153,100 $37,951–$91,900 $50,801–$131,200 $37,951–$76,550 28% $153,101–$233,350 $91,901–$191,650 $131,201–$212,500 $76,551–$116,675 33% $233,351–$416,700 $191,651–$416,700 $212,501–$416,700 $116,676–$208,350 35% $416,701–$470,700 $416,701–$418,400 $416,701–$444,550 $208,351–$235,350 39.6% $470,701
- State income tax rate
- The marginal state tax rate you expect to pay on any additional earnings or taxable distributions.
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.
This calculator was developed by KJE Computer Solutions, which is not affiliated with American Funds. It is intended for use in making a rough comparison of cashing out a taxable retirement plan account and continuing to allow it to grow tax-deferred. We do not guarantee the accuracy of the results or their relevance to your particular circumstances. We encourage you to seek the assistance of your financial professional.
The S&P 500 Index is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by Capital Group. Copyright © 2017 S&P Dow Jones Indices LLC, a division of S&P Global, and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part are prohibited without written permission of S&P Dow Jones Indices LLC.
Copyright 2017 American Funds Distributors, Inc.