Retirement

Traditional 401(k) or Roth 401(k) calculator

Calculate your earnings and more

A 401(k) can be an effective retirement tool. As of January 2006, there is a new type of 401(k) -- the Roth 401(k). The Roth 401(k) allows contributions to a 401(k) account on an after-tax basis -- with no taxes on qualifying distributions when the money is withdrawn. For some investors, this could prove to be a better option than the traditional 401(k), where deposits are made on a pre-tax basis but are subject to taxes when the money is withdrawn. Use this 401(k) or Roth calculator to help determine the best option for retirement.

This calculator requires a Java-enabled browser. To download the plugin, click here.

Retirement

This Financial Calculator requires SUN's Java� Plug-in. If you see this message you will need to download SUN's Java� Plug-in. This can be done automatically by clicking the yellow bar at the top of your browser and choosing �Install ActiveX Control�.

Get the Java� Plug-in!

For more information about this Plug-in please visit: SUN's Java� Plug-in
For more information these financial calculators please visit: Financial Calculators from KJE Computer Solutions, LLC

Definitions

Current age:: Your current age.
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 2010 remains at $16,500. If you are age 50 or over, a "catch-up" provision allows you to contribute even more to your 401(k). In 2010, employees age 50 or over can deposit an additional $5,500 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 $110,000 or more in 2010 or was $110,000 or more in 2009, you may need to contact your employer to see if these additional contribution limits apply to you.
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 type of investments you select. For example, from December 1999 to December 2009, the average annual compounded rate of return for the S&P 500 was -0.6%, including reinvestment of dividends. From January 1970 to December 2009, the average annual compounded rate of return for the S&P 500, including reinvestment of dividends, was approximately 10.1% (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 bank may pay as little as 1% 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 funds and/or investment companies may charge.
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 happened when you were actually 64.
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.
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.

Filing Status and Income Tax Rates 2010 Caution: Do not use these tax rate schedules to figure 2009 taxes. Use only to figure 2010 estimates.
Tax rate	Married filing jointly or Qualified Widow(er)	Single	Head of household	Married filing separately
10%	$0 - 16,750	$0 - 8,375	$0 - $11,950	$0 - 8,375
15%	$16,751- 68,000	$8,376- 34,000	$11,951- 45,550	$8,376- 34,000
25%	$68,001- 137,300	$34,001- 82,400	$45,551- 117,650	$34,001- 68,650
28%	$137,301- 209,250	$82,401- 171,850	$117,651- 190,550	$68,651- 104,625
33%	$209,251- 373,650	$171,851- 373,650	$190,551- 373,650	$104,626- 186,825
35%	over $373,650	over $373,650	over $373,650	over $186,825

Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regard to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.

Compare CDs & Investment Rates

1 Yr CD average
0.67%

About our rates

About this index

Overnight Averages

Product	Rate	+/-	Last week
30 yr fixed	3.67%		3.62%
15 yr fixed	2.80%		2.76%
5/1 ARM	2.60%		2.58%

View rates in your area:

Product	Rate	+/-	Last week
30K HELOC	5.21%		5.21%
30K Home Equity Loan	6.09%		6.12%
50K HELOC	4.76%		4.76%

View rates in your area:

Product	Rate	+/-	Last week
48 Mo Used Car	2.93%		2.97%
48 Mo New Car	2.44%		2.45%
36 Mo Used Car	2.87%		2.93%

View rates in your area:

Product	Yield	+/-	Last week
6 Mo CD	0.45%		0.43%
1 Yr CD	0.67%		0.63%
5 Yr CD	1.24%		1.24%

Compare rates:

Product	Rate
Low Interest Cards	11.01%
Balance Transfer Cards	15.92%
All Variable	15.24%

Compare rates:

Partner Center

Bankrate's Free Content Center

Click here to visit the content center.

Rather watch TV than CD rates?

We'll notify you when rates hit your target.

Subscribe:RSS Feeds

Advertising Disclosure: Bankrate.com is an independent, advertising-supported comparison service. Bankrate may be compensated in exchange for featured placement of certain sponsored products and services, or your clicking on links posted on this website.