Traditional IRA vs. Taxable Savings
This calculator helps to determine whether investing in a traditional IRA or in a taxable savings account is appropriate
for you given your personal financial information, rate of return, and years until retirement.
When you are deciding where to save each year, you have the choice, depending
on your eligibility, of saving to an IRA, or saving to a taxable account.
If you save to an IRA, your savings may be deductible. Growth on IRA savings
will not be taxed until retirement, while growth on taxable saving will be
taxed each year. This tool will allow you to consider all of these factors
in making your decision on where to save.
After you've entered your information below, click the "Calculate" button to determine which option is best for you.
|Input - Personal Information|
1Employer-sponsored retirement plans include
401(k) and 403(b) plans.
2Your MAGI is your adjusted gross income as
figured on your federal income tax return, with certain deductions and
exclusions added back.
3Use an average rate of return that's
appropriate for the mix of investments in your portfolio.