Taxable vs. tax-advantaged savings?
You can accumulate savings on a taxable or tax-deferred basis. When you use taxable savings vehicles, such as federally insured CDs or Money Market Funds with their stable share prices, you are using post-tax money and pay taxes on any earned interest on your savings. Conversely, with some tax-deferred accounts, you may contribute pretax dollars to qualified retirement savings plans, such as IRAs or company-sponsored 401(k)s, in which case distributions or withdrawals are taxed at ordinary income tax rates when they occur after age 59 ½. Which savings method is more effective?
Our Taxable vs. tax-advantaged savings calculator can help illustrate the value of a tax-deferred savings strategy.
The results and explanations generated by this calculator may vary due to user input and assumptions. For a more detailed financial analysis, click on the Contact an Agent button and a local New York Life agent will call you. Please keep in mind that the tax impact on you personally is based partly on factors related to your individual circumstances, which are not captured in this Calculator. Neither New York Life nor its Agents offer personalized tax advice. Please consult your Tax Advisor about the tax-related pros and cons of annuities regarding you. The results and explanations generated by this calculator may vary due to user input and assumptions.
New York Life Insurance Company does not guarantee the accuracy of the calculators, results, explanations, nor applicability to your specific situation. Calcululator results are hypothetical, based on assumptions which you choose. We recommend that you use this calculator as a guideline only.