Taxable vs. Tax Deferred vs. Tax Free Investment

How taxes are applied to an investment can make an incredible difference. This calculator is designed to help compare a normal taxable investment with two common tax-advantaged situations: an investment in which taxes are deferred until withdrawals are made, and an investment in which taxes are paid on money that goes into the account, but all withdrawals are tax-free.

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While every effort has been made to provide reliable interactive calculators, ThinkAdvisor does not guarantee their accuracy. Data inputs of numerical values are hypothetical and for illustration purposes only. Data outputs may not be used to predict or project actual investment results. Where rates of return are shown, they are not representative of any particular investment.

Please be advised that this document is not intended as legal or tax advice. 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. The tax information was written to support the promotion or marketing of the transaction(s) or matter(s) addressed and you should seek advice based on your particular circumstances from an independent tax advisor.