Estimate and compare the future value difference between a taxable product
and a tax-deferred product.
All fields required.
1 Taxes are assessed and paid on the gains each year.
2 Taxes deferred on gains.
* The federal tax rates in the drop-down box are scheduled to be in effect
from 2018-2025. This calculator will use the rate you specify for all years
of the calculation, including years after 2025.
The tax-deferred product future value has been calculated with no
taxation of gains. Taxes on gains are paid only when the money is
withdrawn. When a withdrawal or distribution is taken, the amount
withdrawn would be reduced by income taxes on any gain, and if taken prior
to age 59½, a 10% federal additional tax may apply. If the entire value
was assumed to be withdrawn, the difference between the taxable product
future value and the tax-deferred product future value would be less. If
the tax-deferred product is an annuity contract, there may be differing
fees, expenses, and charges associated with an annuity contract that are
not reflected in this hypothetical calculation tool. If these fees,
expenses, and charges had been included, the difference between the
taxable product future value and the tax-deferred product future value
would be less.
The taxable product future value has been calculated with taxation of gains
each year as ordinary income at the marginal tax rate you entered. It is
important to note that the lower maximum tax rates on capital gains and
dividends could make the final result for the taxable product more
favorable, thereby reducing the difference in performance between the
taxable product and the tax-deferred product. Individuals should consider
their time horizon, risk tolerance, and current and anticipated income tax
brackets when making financial decisions. These factors, as well as changes
in tax law, may have a significant impact on the results of this comparison.
Information and interactive calculators are made available as self-help
tools for independent use. Allianz Life Insurance Company of North America
(Allianz) cannot and does not guarantee their accuracy or their
applicability to any individual circumstances. Allianz encourages you to
seek personalized guidance from qualified professionals regarding all
personal finance issues. This analysis is based solely on the information
you provide. The results presented by this calculator are hypothetical and
for illustrative purposes, and do not represent current or future
performance of any specific financial product. No guarantees are made as to
the accuracy of any projection. All financial products carry a degree of
risk, and past performance is not a guarantee of future results. Generally,
the greater the return, the greater the risk.