Tax Deferred Savings

What Are the Advantages of Tax-Deferred Accumulation?

This calculator is designed to help you estimate the potential future value of tax-deferred investments vs. taxable investments using an identical hypothetical annual rate of return.

The results below show the hypothetical values of a taxable investment vs. a tax-deferred investment, and the hypothetical value of the tax-deferred investment after taxes are paid. The growth of the tax-deferred investment exceeds that of the taxable investment because you keep more of your money working for you. If you increase the number of years you plan to save, you’ll see that the longer your time frame, the greater the difference becomes.

Your Results

In a taxable account, your savings would grow to: $0
In a tax-deferred account, your savings would grow to: $0
Even after taxes, the tax-deferred account would grow to: $0

The chart below illustrates the difference