Tax savings are invested at the pre-retirement rate of return and the lower IRS limits are used for both Roth IRA income levels and Traditional IRA deductibility. Additionally, inflation is assumed at 3 percent.
You can't make regular contributions to a Traditional IRA in the year you reach 70½ and older; however, you may be eligible to still contribute to a Roth IRA and make rollover contributions to a Roth or Traditional IRA beyond age 70½. Withdrawals from your qualified plan are taxed as ordinary income and may be subject to a 10 percent federal tax penalty if taken prior to age 59½. For 401k plans, if you left your employer in or after the year in which you turned 55, you may not be subject to the 10 percent early withdrawal penalty.
This interactive calculator is made available to you as a self-help tool for your independent use and is not intended to provide financial advice. We cannot and do not guarantee its applicability or accuracy in regard to your individual circumstances. Examples are for illustrative purposes. We encourage you to seek personalized advice from a qualified financial professional regarding all personal finance issues. Society of Grownups will assume no liability for the use of or reliance on this calculator.
The results of this analysis are based on assumptions of investment returns, inflation, taxes, and other economic conditions. These assumptions should be considered hypothetical in nature, and your actual results may vary. Investing entails the risk of market volatility, and past performance does not guarantee future results. These projections should be considered illustrative in nature and do not guarantee the achievement of overall financial objectives.
The arts—specifically the performing arts—set the stage for a non-cubicle career. New York-based actress Shiree Adkins discusses how acting has always been her one true calling.