Zoho Sheet

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56

Alternatives to a High Cost 401k or 403b Plan

Assumptions

Marginal Tax Rate Now

25%

This spreadsheet compares alternatives to a high cost 401k or 403b plan.

Marginal Tax Rate at Retirement

25%

Cells under "Assumptions" in blue are inputs. Feel free to change to your own situation.

Capital Gains Tax Rate at Retirement

20%

Other cells are calculated. For more info, see

Tax Rate on Dividends

25%

Front-end Load in 401k [note 1]

0.00%

Alternatives to High Cost 401k or 403b Plan

Investment Return

8.0%

Dividend Distributions in Taxable Account

2.0%

Extra Cost in 401k

1.5%

Number of Years In Plan Until Rollover to IRA

Number of Years Until Withdrawal

Calculated Fields

Summary

Investment Return in 401k or 403b

6.5%

Investment Return in Taxable

7.5%

Advantage Over 401k or 403b

Traditional 401k contribution

100

Roth IRA

7.2%

Taxable or Non-Deductible IRA investment

Non-Deductible IRA (If Not Eligible for Roth)

-16.9%

Taxable

-19.9%

401k then rollover

Value of Rollover IRA (from 401k) at Retirement

938.3

Income tax on withdrawal

(234.58)

Value of Rollover IRA (from 401k) after tax

703.73

Roth IRA

Value of Roth IRA at Retirement

754.70

Non-Deductible IRA (If Not Eligible for Roth)

Value of Non-Deductible IRA at Retirement

754.70

Income tax on withdrawal

(169.92)

Value of Non-Deductible IRA at Retirement

584.77

Taxable Account

Value of Taxable before capital gains tax

656.62

Capital gains tax

(93.06)

Value of Taxable after tax

563.56

Notes:

[1] Front-end load is often waived for 401k and 403b plans. Please verify with plan administrator.

Sheet1