Definitions
- Current age
- Your current age.
- Age of retirement
- Age you wish to retire. We calculate the
ending balance at retirement for each of your rollover options.
- Federal income tax rate
- Consult the table below to determine your
federal tax bracket. If you are unsure, the calculator will choose
25%. Please note that state taxes are entered in a separate entry
field.
| Filing
Status and Income Tax Rates 2005
|
| Tax rate |
Married
filing jointly
or Qualified Widow(er) |
Single |
Head of
household |
Married
filing separately |
| 10% |
$0 -
14,600 |
$0 -
7,300 |
$0 -
$10,450 |
$0 -
7,300 |
| 15% |
$14,601-
59,400 |
$7,301-
29,700 |
$10,451-
39,800 |
$7,301-
29,700 |
| 25% |
$59,401-
119,950 |
$29,701-
71,950 |
$39,801-
102,800 |
$29,701-
59,975 |
| 28% |
$119,951-
182,800 |
$71,951-
150,150 |
$102,801-
166,450 |
$59,976-
91,400 |
| 33% |
$182,801-
326,450 |
$150,151-
326,450 |
$166,451-
326,450 |
$91,401-
163,225 |
| 35% |
over
$326,450 |
over
$326,450 |
over
$326,450 |
over
$163,225 |
Source: Revenue Procedure 2004-71
(http://www.irs.gov/pub/irs-drop/rp-04-71.pdf)
- State income tax rate
- The current State marginal tax rate you
expect to pay on any additional income (or taxable distributions).
- Current 401(k) balance
- The starting balance or current amount you
have invested or saved in your 401(k).
- Annual rate of return
- The annual rate of return for your 401(k)
account. The actual rate of return is largely dependant on the
type of investments you select. From January 1970 to December
2004, the average compounded rate of return for the S&P 500,
including reinvestment of dividends, was approximately 11.5% per
year. During this period, the highest 12-month return was 64%, and
the lowest was -39%. Savings accounts at a bank pay as little as
1% or less. It is important to remember that future rates of
return can't be predicted with certainty and that investments that
pay higher rates of return are subject to higher risk and
volatility. The actual rate of return on investments can vary
widely over time, especially for long-term investments. This
includes the potential loss of principal on your investment.
|
