🇺🇸
Your results will appear here
Fill in the form on the left and press Calculate to see a full breakdown.
Understanding 401(k), Roth IRA, and US Retirement Tax Rules
This calculator models your US retirement savings across both 401(k) and IRA accounts, applying IRS contribution limits, employer matching rules, federal tax brackets, and state-specific tax treatment of retirement distributions.
It projects your balances from today through retirement, models tax-efficient withdrawals, calculates Required Minimum Distributions (RMDs) for Traditional accounts, and compares Traditional vs Roth outcomes based on your tax profile.
IRS Contribution Limits
401(k) employee contribution limits are adjusted annually for inflation. Catch-up contributions are available for those aged 50 and older, and SECURE 2.0 introduced a super catch-up provision for individuals aged 60-63. Total limits include both employee and employer contributions.
IRA contribution limits also adjust annually. Roth IRA contributions phase out based on Modified Adjusted Gross Income (MAGI), with specific thresholds for Single and Married Filing Jointly statuses.
State Tax Treatment of Retirement Distributions
9 states have no income tax (AK, FL, NV, SD, TN, TX, WA, WY, NH). Several states fully exempt 401(k)/IRA distributions (PA, IL, MS, AL, HI). Many states offer partial exemptions based on age or income. A few states (CA, OR, MN) fully tax retirement distributions.
This calculator applies your state's treatment automatically, but you can override the effective rate if you expect a different rate in retirement.
Required Minimum Distributions (RMDs)
SECURE 2.0 raised the RMD age to 73 (born 1951-1959) and 75 (born 1960+). Roth 401(k) RMDs were eliminated starting 2024. Traditional 401(k) and IRA accounts require RMDs calculated using the IRS Uniform Lifetime Table.
This calculator projects your RMDs and includes them in your taxable income during retirement.
Traditional vs Roth Decision
Traditional contributions reduce your taxable income now but are taxed on withdrawal. Roth contributions are made with after-tax dollars but grow tax-free and are tax-free in retirement.
The optimal choice depends on your current marginal rate vs your expected effective rate in retirement. This calculator compares both scenarios using your actual tax profile.
+What is the 401(k) contribution limit?
The employee contribution limit is adjusted annually for inflation. If you're 50 or older, you can contribute an additional catch-up amount. If you're between 60-63, SECURE 2.0 allows a super catch-up contribution. The total limit including employer contributions is also adjusted annually.
+How does employer matching work?
Employer match is typically expressed as a percentage of your contribution, up to a percentage of your salary. For example, '100% match up to 6% of salary' means if you contribute 6% of your salary, your employer adds another 6%. Employer contributions don't count toward your employee limit but do count toward the total limit.
+What is the Roth IRA income limit?
Roth IRA contributions phase out based on your Modified Adjusted Gross Income (MAGI). The phase-out ranges are adjusted annually for inflation. Above those ranges, you cannot contribute directly to a Roth IRA (though a Backdoor Roth conversion may still be available).
+Which states don't tax 401(k) or IRA distributions?
States with no income tax (AK, FL, NV, SD, TN, TX, WA, WY, NH) don't tax any retirement distributions. Additionally, Pennsylvania, Illinois, Mississippi, Alabama, and Hawaii fully exempt 401(k) and IRA distributions from state income tax.
+What is the RMD age under SECURE 2.0?
SECURE 2.0 raised the RMD age to 73 for those born 1951-1959, and 75 for those born 1960 or later. Roth 401(k) accounts no longer have RMDs starting in 2024. Traditional 401(k) and Traditional IRA accounts still require RMDs.
+Should I choose Traditional or Roth 401(k)?
Choose Traditional if your current marginal tax rate is higher than your expected effective rate in retirement (you save more on taxes now). Choose Roth if you expect your tax rate to be higher in retirement, or if you want tax-free withdrawals and no RMDs. This calculator compares both scenarios for your specific situation.
+How is the sustainable retirement income calculated?
The calculator uses a real annuity approach (constant purchasing power) adjusted for the tax drag on Traditional account withdrawals. It accounts for federal tax brackets, standard deduction, and your state's tax treatment of retirement distributions.
+Can I override the state tax rate?
Yes. If you expect to live in a different state in retirement, or if your state's actual rate will differ from the estimate, enter your expected effective state tax rate in the override field. Leave it empty to use the automatic estimate based on your selected state.
+How accurate is this calculator?
The calculator uses the latest IRS limits, federal tax brackets, standard deductions, and RMD tables. State tax rates are approximations based on typical middle-income retirees. Actual taxes depend on your specific income, deductions, and state rules. Use this for planning and comparison, not as a tax filing tool.
+What about the Rule of 55 and early withdrawals?
This calculator assumes withdrawals begin at your stated retirement age. If you retire before 59.5, a 10% early withdrawal penalty may apply to Traditional distributions unless you qualify for exceptions like the Rule of 55 (leave your job at 55+) or SEPP/72(t) substantially equal periodic payments. Roth contributions (not earnings) can be withdrawn penalty-free at any time.