Compare taxable, tax-deferred and tax-free investment growth
Investment vehicles are taxed differently. This calculator is intended to help compare a fully taxable investment to both a tax-deferred and a tax-free investment. In the taxable scenario, taxes are applied annually while in the tax-deferred scenario, the investment is not taxed until the money is withdrawn. In the tax-free scenario, the money is an investment that is not subject to Federal or State tax.
*The impact of state income taxes, if any, is not illustrated.
This calculator is provided for educational purposes only. This calculator is made available to you as a self-help tool for your independent use and is not intended to provide investment advice. The information provided is hypothetical and does not reflect a particular investment or performance. We cannot and do not guarantee its applicability or accuracy in regards to your individual circumstances. Equitable Financial and its affiliates are not responsible for any errors or for the actions taken as a result of the information provided by this calculator. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.
This analysis is based on information and assumptions provided by you. Actual results will vary. There are risks associated with investing including the risk of loss not reflected here. The assumed rate of return is not guaranteed. Investments offering the potential for higher rates of return also involve a higher degree of risk.
Lower maximum tax rates on capital gains and dividends would make the investment return for the taxable investment more favorable, thereby reducing the difference in performance between the accounts shown. You should consider your personal investment horizon and income tax bracket, both current and anticipated when making an investment decision as these may further impact the results of the comparison. A tax penalty may apply to withdrawals from a tax-deferred investment. Equitable Financial and its affiliates do not provide tax or legal advice. Please consult your tax and legal advisors regarding your particular circumstances.
Accordingly, any tax information provided in this document is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer.
Equitable Financial Life Insurance Company (New York, NY). Distributors: Equitable Advisors, LLC (member FINRA, SIPC) (Equitable Financial Advisors in MI & TN) and Equitable Distributors, LLC.
GE-6469161.1 (3/24) (Exp. 3/26)
