|Traditional IRA savings:|
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|Investment return, taxes, employment and marital status:|
7% return, 25% tax, 15% tax during retirement, not married, no employer plan
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|Totals at Retirement|
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|Traditional IRA vs. Taxable Account|
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If you are 50 or older you can make an additional 'catch-up' contribution of $1,000. The 'catch-up' contribution amount of $1,000 remains unchanged for 2015. In order to qualify for the 'catch-up' contribution, you must turn 50 by the end of the year in which you are making the contribution.
|Tax filing status||2015 Traditional IRA Deduction Phase-Out Ranges|
|Married filing jointly||$98,000 to $118,000|
|Single||$61,000 to $71,000|
|Married filing separately||$0 to $10,000|
In addition, all earnings in your taxable account are assumed to be taxable in the year they are earned.
It is important to remember that these scenarios are hypothetical and that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are generally subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment. It is not possible to invest directly in an index and the compounded rate of return noted above does not reflect sales charges and other fees that Separate Account investment funds and/or investment companies may charge.
Sunmark Federal Credit Union
1187 Troy Schenectady Road