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Tax-Deferral Calculator

The power of tax deferral

There are numerous ways to invest for retirement. One popular method is to leverage the power of tax deferral available with IRAs, 401(k)s and annuities, for example. Tax deferral can help you grow your money faster since the value is not being reduced by annual income taxes each year. Instead, earnings and any untaxed contributions are taxed at ordinary income rates when you begin taking withdrawals from tax-deferred investments. Keep in mind, there is a 10% IRS tax penalty that may apply for taxable withdrawals from tax-deferred investments before age 59 ½.

This tool helps compare a taxable investment to a tax-deferred investment with after-tax contributions.

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  •  Taxable Portfolio
  •  Tax-Deferred Portfolio
  •  Tax-Deferred Portfolio After Taxes