Taxable vs. Tax-Deferred Investments

Compare taxable investments to tax-deferred alternatives like 401(k)s and IRAs.

  • Methods explained
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Investment Details

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25 years
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Comparison Results

WinnerTax-Deferred
Tax-Deferred Value (Before Tax)$691,307
Tax-Deferred After-Tax Value$539,219
Taxable Account Value$380,682
Advantage$158,537
How it works›

Model and assumptions. Compounds the accounts using the entered return and tax assumptions, then applies the modeled withdrawal tax. The benefit depends on contribution timing, holding period and tax rates. Contribution eligibility, fees and future tax-law changes are not forecast.OpenStax: time value of moneyOpenStax: annuity formulas