Retirement Contribution Effects on Your Paycheck Calculator

An employer-sponsored retirement savings account could be one of your best tools for creating a secure retirement. It provides two important advantages. First, there are certain tax advantages. You can make traditional pre-tax contributions to your account, meaning you only pay taxes on contributions and earnings when the money is withdrawn. Or you may be able to make Roth (after-tax) contributions to your account and withdraw your money tax-free if certain conditions are met.* Second, many employers provide matching contributions to your account, which can range from 0% to 100% of your contributions. Use this calculator to see how increasing your contributions to a 401(k), 403(b), or 457 plan can affect your paycheck as well as your retirement savings. This calculator uses withholding schedules, rules, and rates from "IRS Publication 15" and "IRS Publication 15T". This calculator uses the redesigned W-4 created to comply with the elimination of exemptions in the Tax Cuts and Jobs Act (TCJA).”

*Withdrawals of earnings qualify for tax-free treatment (1) if they are made more than five years after your first Roth contribution and (2) if you are at least age 59½, if you qualify due to a disability or in the event of death. Otherwise, withdrawals of earnings may be subject to ordinary income tax and a 10% tax penalty.

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