How Much Tax Will I Save From My Retirement Contributions?
This calculator helps you estimate how much tax you will save from your retirement contributions.
Almost all personal finance experts agree that one of the most important elements of smart retirement planning is to regularly contribute a portion of your income to a savings account, investment portfolio, or, better yet, a qualified retirement plan. Many of these experts advise withholding a set portion of each paycheck for your future retirement needs. The specific amount will vary based on individual needs and circumstances, but the targeted amount generally falls around 10-15% of each paycheck.
This has many advantages, including establishing a regular schedule for savings, making contributions more difficult to avoid or defer, and aligning your expenses with your post-contribution earnings.
One of the additional advantages to contributing a set portion of each paycheck to a qualified tax-deferred retirement plan, such as a Traditional IRA, is that your contributions are not taxed until they are withdrawn in retirement. This can offer a significant financial benefit.
This Income Withholding Calculator will help you determine how much Federal Income Tax you can save by contributing a portion of each paycheck to a qualified tax-deferred retirement plan. While this will provide some general direction, it is always wise to seek advice from a professional financial advisor regarding your future retirement needs and plans.
Questions & Answers - COMPLIMENTS OF CONSUMER FINANCIAL PROTECTION BUREAu (Click for Answers)