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Make the Right Choice with the 401(k) Rollover Calculator

Make the Right Choice with the 401(k) Rollover Calculator

Use the slider on the Rollover IRA Distribution Calculator to input the amount of money currently in your 401(k), then fill in your current age. As you can see, rolling your retirement assets into an IRA instead of taking a cash distribution can have a huge impact on the taxes you pay today and the long-term growth potential of your investments.

IRA Rollover

Our Rollover IRA Distribution Calculator shows that initial investment continues to grow tax-deferred at a hypothetical rate of 7% (compounded annually).

Cash Distribution

Our Rollover IRA Distribution Calculator shows that initial investment, reduced by 35% due to taxes and early withdrawal penalties, grows at a hypothetical rate of 7% (compounded annually(, with gains taxed at the current capital gains tax rate of 15%.

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This Rollover IRA Distribution Calculator example is for illustrative purposes only and should not be considered representative of the returns of any specific security. Money in the tax-deferred account is taxed when it is withdrawn. Lower maximum tax rates on capital gains and dividends will make the investment return for the taxable account more favorable, thereby reducing the difference in the dollar amounts between the two accounts. Changes in tax rates and the tax treatment of investment earnings may impact comparative results. You should consider your personal investment horizon and income tax brackets, both current and anticipated, when making an investment decision as these factors may further impact the results of the comparison.

1Note: The Cash Distribution area in the Rollover IRA Distribution Calculator assumes an individual is under age 59½, in the 25% federal tax bracket, and that no exception to the 10% early withdrawal penalty tax applies. Your percentages may vary.
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