Retirement Contribution
Tax Savings Estimator

An eligible pre-tax employee deferral or deductible traditional IRA contribution can reduce ordinary taxable income. This estimator compares federal rate-schedule tax before and after the supported additional amount. If a contribution crosses brackets, different portions can save tax at different rates.

Regular employee pre-tax and designated Roth 401(k) deferrals, and traditional IRA contributions with a verified deductible amount. It models one individual and one additional contribution scenario. Employer matches, solo 401(k), SEP, SIMPLE, spousal IRAs, Roth IRA eligibility and combined-account plans need separate review.

Regular employee 401(k) deferrals use $23,500 for 2025 and $24,500 for 2026. IRAs use $7,000 and $7,500; at age 50 or older, the supported IRA limits become $8,000 and $8,600. Compensation and earlier contributions can reduce room. All 401(k) catch-up contributions are outside this model.

No. Traditional IRA deduction eligibility can depend on filing status, modified AGI and workplace retirement coverage for you or your spouse. The calculator requires a verified deductible amount before estimating IRA tax savings. Unknown deduction eligibility stays unknown; verified zero is a separate choice.

Designated Roth employee deferrals are after-tax contributions and do not create the immediate deduction modeled here. Their current federal income-tax savings are zero in this limited calculation. Future qualified distributions may receive different treatment; the calculator does not project future tax or recommend traditional versus Roth.

For 401(k), include earlier regular pre-tax and Roth employee deferrals across plans sharing the employee limit; exclude employer contributions. For IRA, include earlier traditional and Roth IRA contributions for the year, excluding rollovers. Baseline income must already reflect earlier income reductions so they are not deducted twice.

The estimator models only the smaller of the request and remaining supported room. The rest is displayed as not modeled and receives no estimated benefit. That is not permission to contribute, an excess-contribution penalty calculation or a correction procedure. Verify account and plan rules before making a contribution.

No. This result covers federal ordinary income tax before credits. Pre-tax 401(k) employee deferrals generally remain subject to Social Security and Medicare taxes. The Saver’s Credit, other credits, state taxes, SE taxes and income-driven deduction changes are excluded.

No. It is a current-year modeled income-tax reduction. Pre-tax retirement distributions are generally taxed later. Payment timing, future withdrawal tax, growth, employer matches and refund calculations are outside scope. The funding-cost figure subtracts only this modeled current federal tax effect from the additional contribution.