401(k) Rollover Calculator.

401(k) & IRA Rollover Calculator

This calculator will compare the consequences of taking a lump-sum distribution of your 401(k) or IRA versus continuing to save it in (or roll it into) a tax-deferred account until retirement.

Assumptions: Contributions to plans are made before taxes, federal and state income tax rates are the same at retirement age, and the plan withdrawels are qualified withdrawels under the IRS rules.

Current & Retirement Age Age
Current age (#):
Age you expect to retire (#):
Current Balance & Rate of Return Amount
Current balance of your plan ($):
Expected annual rate of return (%):
Income Taxes Rate
Federal income tax bracket (%):
State income tax rate (%):
Your Results Lump-Sum Distribution Rollover to
Current value before taxes and penalties:
Income tax paid:
Total left now:
Future value before taxes:
Future taxes to be paid:
Future net available:

Current San Diego Deposit Interest Rates

We publish current San Diego savings & CD rates. Savers can use the filters at the top of the table to adjust their initial deposit amount along with the type of account they are interested in: high interest savings, certificates of deposit, money market accounts and interest bearing checking accounts.

Setting It Aside for Your Future

Setting aside retirement savings provides the basis for maintaining the lifestyle you want after leaving your employment roles behind.  There is no cookie-cutter blueprint outlining the best available approach – these are individual concerns, but certain strategies are commonly adopted to carry forward after retirement.

Employer-sponsored retirement plans are essential for supplementing Social Security and other retirement benefits.  Pensions, annuities, individual retirement accounts and 401K programs provide lifelines for retirees once they leave their workplaces.  Various calculators weigh the costs and benefits associated with myriad retirement funding options, including the 401K and IRA rollover tool.

Growing Returns.

Individual 401K and Retirement Accounts

A 401K is an individual retirement account put-forth by an employer, to help establish retirement savings for employees.  The most significant benefit for workers is the opportunity 401K accounts present, to contribute a portion of their paychecks toward retirement, before taxes are taken out.  In other words, the contributions made while you are working are not subject to tax until the money is withdrawn during retirement.

The accounts are named for the tax code governing their use, which started in the later half of the twentieth century to provide supplemental retirement savings for pensioners and other retirees. The accounts are more common than pensions now, replacing them in many cases to increase cost efficiency.  And employees have a say in the way their retirement withholdings are invested, choosing between multiple options provided by employers.  That way, employees with appetites for more aggressive investments are not limited to conservative approaches.  Commonly, 401K investments are held in stocks, bonds, and money-market products carrying varying levels of risk.

In addition to funds contributed by workers, employees offer matching portions, which help savings grow faster.  The only stipulation included with 401K accounts is a vesting period, representing the amount of time an employee must work for the company, before employer contributions can be used.  The safeguard ensures that your years of service adequately earn the retirement contributions offered, so that you don't capitalize on benefits before putting in your time.  401K accounts are managed by outside brokerages, in contrast to pension funds which typically fell under employer responsibility.

Unlike 401Ks Individual retirement accounts operate outside employer relationships.  Individuals establish these accounts with independent brokers and investment firms, contributing money over time.  The accounts do not include employer matches or other incentives, instead relying on the funds you put in.  Options for placing your investments are varied, providing greater flexibility than 401K accounts in most cases.  Investments performing poorly can be reevaluated and shifted at each investor's discretion.

Job changes and other circumstances leave 401K and IRA questions unanswered.  Rollover calculator evaluates your options, examining the impacts of lump sum payments versus rolling accrued funds into tax deferred accounts until you are ready to retire.  Your current plan balance, your age, and a number of factors influence each case, highlighting the best scenario for yours.  Another IRA variation called a Roth IRA is funded using post-tax money, rather than waiting to tax it at withdrawal time.  When Roth funds are used, there is no tax obligation on the individual contributions or the appreciation of the account, making them attractive targets for rolling other investments.