Taxable vs. tax-deferred vs. tax-free investmentHow taxes are applied to an investment can make an incredible difference. This calculator is designed to help compare a normal taxable investment to two common tax-advantaged situations: An investment where taxes are deferred until withdrawals are made, and an investment where taxes are paid on money that goes into the account, but all withdrawals are tax free.
Calculators are provided by an independent third party and are being made available to you as self-help tools for your independent use and are not intended to provide investment advice or be representative of actual results. We do not guarantee their applicability or accuracy in regards to your individual circumstances. The determinations made by these calculators should not be construed as guarantees or projections. Moreover, the reasonableness of certain information may change over time because of changes in tax law, investment trends and your personal circumstances. The information contained here is based on current law and has been obtained from sources believed to be reliable, but we do not guarantee its accuracy. Investment results can vary considerably depending on the type of securities involved, general market conditions and other factors. It is important that you periodically review and update your plans. Raymond James does not provide tax or legal advice. You should contact your tax or legal advisor concerning your particular situation. All investments carry a degree of risk, and past performance is not a guarantee of future results.
Asset allocation and diversification do not guarantee a profit nor protect against loss.
Any withdrawals from tax-deferred accounts may be subject to income taxes and prior to age 59 1/2 a 10% federal penalty tax may also apply.