Account Comparison Calculator

Taxable vs. tax-deferred

See what happens to each account if your tax bracket changes when you retire. Accumulation uses your current bracket; a retirement-bracket selector applies any federal bracket to the withdrawal years. The tax-deferred account can be qualified (IRA/401k — withdrawals fully taxed) or non-qualified (annuity — only gains taxed, basis tax-free). Uses state & federal brackets, a blended “Investment Tax,” and RMDs. No inflation. All math runs in your browser; nothing is saved or transmitted.


How it works

An Investment Tax rate is built from your allocation:

  • Bonds → taxed at your ordinary rate (federal + state)
  • Equity & alternatives → taxed at long-term capital gains (federal + state)

Applied annually to the taxable account and deferred to withdrawal for tax-deferred. Your current bracket applies while saving; the retirement-bracket selector applies to the withdrawal years.

The tax-deferred account has two types:

  • Qualified (IRA / 401k) — the entire withdrawal is taxed as ordinary income; RMDs apply from age 75.
  • Non-qualified (e.g. annuity) — contributions are after-tax basis; withdrawals are LIFO, so gains come out first (taxed as ordinary income) and basis returns tax-free. No RMDs.

Your contribution is entered pre-tax. The qualified account invests the full pre-tax dollars; the taxable and non-qualified accounts are funded with after-tax money, so their contribution is reduced by your current ordinary rate (federal + state). That upfront difference is the core trade-off the comparison surfaces.

Desired withdrawal is your net spending need; tax-deferred grosses up so the account covers its own withdrawal tax.

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Tax-deferred type withdrawal taxation

Qualified (IRA/401k): full withdrawal taxed as ordinary income. Non-qualified (annuity): only gains taxed (LIFO), basis tax-free, no RMDs.

Required Minimum Distributions tax-deferred · age 75

For illustrative purposes only. Tax figures are 2025 estimates; state tax is approximate. Results use a simplified model, ignore inflation, and are not investment, tax, or legal advice. Consult a qualified professional.