Early Retirement Calculator

Current Age:

Retirement Age:

Retire In Years:

IRA no-penality withdraw age 59.5:

Medicare Age:

Required Minimum Distribution Age:

Social Security Benefit Age (62-70):

Life Expectancy (Age):

Summary

You are {{data.person.age}} years old, you are planning to retire in {{data.person.retirement.age-data.person.age}} years in {{data.person.retirement.year}} at the age of {{data.person.retirement.age}} (beginning of the year). You can start penalty free withdrawing from your traditional 401k/IRA accounts at {{data.noPenaltyWithdraw.age}}(59.5), your medicare will kick in when you are {{data.medicare.age}}, and your social security retirement benefit starts at {{data.person.ss.age}}. When you are {{data.rmd.age}}, you'll be required to withdraw (RMD) from your traditional tax deferred accounts (IRA, 401k). Your life expectancy age is {{data.person.deceased.age}}. Your total number of years in retirement is {{data.person.deceased.age-data.person.retirement.age}}.

Current Savings (you and spouse)

Current Pretax Balance: {{toDollar(data.person.pretaxBalance)}}

Current Roth Balance: {{toDollar(data.person.roth)}}

Current Post Tax Investment: {{toDollar(data.person.investment)}}

Salary based income and savings (you and spouse)

Current Combined Salary: {{toDollar(data.person.salary)}}

Merit Increase: {{toPercent(data.meritIncrease)}}

Employee 401k Contribution: {{toPercent(data.contrib.employeePercent)}}

Employee Roth 401k Contribution: {{toPercent(data.contrib.roth401kPercent)}}

Employer 401k Match: {{toPercent(data.contrib.employerPercent)}}

Employer 401k Match Up To: {{toPercent(data.contrib.employerMatchUpTo)}}

Social Security Benefits (you and spouse)

check https://secure.ssa.gov/ for estimated SS Benefits

Social Security Benefit Age (62-70):

Monthly Benefit Amount: {{toDollar(data.person.ss.perMonth)}}

Current calculation assumes a single combined social security benefit.

Rate of return

Annual Return Before Retirement: {{toPercent(data.annualReturn.beforeRetirement)}}

Annual Return After Retirement: {{toPercent(data.annualReturn.afterRetirement)}}

Summary : Net worth ({{toDollar(data.person.roth+data.person.investment+data.person.pretaxBalance)}}.)

Your current household earned income is {{toDollar(data.person.salary)}}, you expect annual merit increase of {{toPercent(data.meritIncrease)}}.

Your current tax deferred retirement accounts have{{toDollar(data.person.pretaxBalance)}}, you are contributing {{toPercent(data.contrib.employeePercent)}} of your salary to 401k, and your employer contributes {{toPercent(data.contrib.employerPercent)}} of your contribution up to {{toPercent(data.contrib.employerMatchUpTo)}}, total contribution is {{toPercent(data.contrib.totalPercent)}} of your salary each year. Your current year 401k contribution calculates to be {{toDollar(data.person.salary*data.contrib.totalPercent/100)}}.

Your current Roth retirement accounts have{{toDollar(data.person.roth)}}, you are contributing {{toPercent(data.contrib.roth401kPercent)}} of your salary to Roth 401k, and your employer contributes {{toPercent(data.contrib.employerPercent)}} of your contribution up to {{toPercent(data.contrib.employerMatchUpTo)}}, total contribution is {{toPercent(data.contrib.rothTotalPercent)}} of your salary each year. Your current year Roth 401k contribution calculates to be {{toDollar(data.person.salary*data.contrib.rothTotalPercent/100)}}.

Yearly (Before Retirement) {{toDollar(data.spending.beforeRetirement)}}

Yearly (After Retirement) {{toDollar(data.spending.afterRetirement)}}

Yearly Retirement Health Insurance (Before Medicare) {{toDollar(data.spending.insurance)}}

Your estimated yearly spending before retirement is {{toDollar(data.spending.beforeRetirement)}}, monthly spending is {{toDollar(data.spending.beforeRetirement/12)}}, this should include:

Housing
Your expensive kid(s) - tuition, activities, etc

Your estimated yearly spending after retirement is {{toDollar(data.spending.afterRetirement)}}, monthly spending is {{toDollar(data.spending.afterRetirement/12)}}:

Lower housing expenses, and hopefully no more mortgage
Higher medical expenses
More traveling

Your estimated starting Medicare year {{data.medicare.year}} cost based on

When you retire in {{data.person.retirement.age-data.person.age}} years at {{data.person.retirement.age}}, you are not yet qualified for Medicare, your estimated your monthly health insurance out of pocket before Medicare kicks in is {{toDollar(data.spending.insurance/12)}}.

Your spending will be adjusted for {{toPercent(data.inflation)}} inflation every year.

Age to start Roth Conversion

Conversion based on tax bracket

- or + $ amount from the bracket

Required Minimum Distribution {{data.rmd.year}} (age {{data.rmd.age}})

When you reach the age of {{data.rmd.age}}, you'll be required to take "Required Minimum Distribution" from your tax deferred traditional 401k/IRA accounts, and distribution is taxed at the ordinary income rate.

The 'ordinary income' also means that you'll have taxable income, which affects the tax you pay, your Medicare payment, and Social Security retirement benefit taxes. However, there are some tax benefits of keeping some money in the tax-deferred accounts, you want the amount to be low enough that you won't be forced to take out a lot each year. The RMD money you are forced to take out cannot be directly converted to Roth IRA. The IRS requires that you take the RMD for the year before you can perform a Roth conversion.

The strategy is to convert your traditional 401k/IRA to Roth IRA as early as possible (typically after you retire), you'll pay taxes for the years of conversion; once converted, your roth balance, including gains, won't be taxed again, and there's no required minimum distribution, nor will your withdraws from Roth count as taxable income.

Your Roth conversion starts at {{data.distribution.age}}, and fills up the {{toPercent(data.distribution.bracket)}}tax bracket; at {{data.yearlyData.find(x => x.pretaxBalance == 0).age-1}}, your tax deferred accounts will have $0.00 at {{data.rmd.age}}, your tax deferred accounts will have {{toDollar(data.rmd.pretaxBalance)}}.

you'll be required to withdraw {{toDollar(data.rmd.pretaxBalance)}} / 27.4 = {{toDollar(data.rmd.rmd)}} on first year and increases percentage wise every year after. Your tax bill on that first year distribution is around {{toDollar(calculateOrdinaryIncomeTaxForYear(this.data.rmd.rmd, this.data.rmd.year))}}.

State Tax (Before Retirement) {{toPercent(data.tax.state.beforeRetirement)}}

State Tax (After Retirement) {{toPercent(data.tax.state.afterRetirement)}}

Inflation {{toPercent(data.inflation)}}

Taxes

Federal Ordinary Income Tax (see table below) - with historical 1.7% increase in bracket ceilings each year
Federal Capital Gain Tax (0%/15%/20%/23.8% for long term)
FICA (SS & Medicare), 6.2%, and extra 0.9% for portion of salary income over $250,000; no FICA on capital gains or roth conversion.
Medicare Surtax 3.8% on Capital Gain for MAGI over $250,000.
State Taxes allows different taxes for before and after retirement.
Long-term capital gains can't push you into a higher tax bracket

Social Security benefits tax:

Depending on your 'provisional income', 0%-85% of SSN income is taxed. 'Provisional income' includes gross income (wages, interest, dividend, pension, rent income), tax-free interest (municipal bond) and 1/2 of SS Benefits.

For single filer (tax): if provisional income is less than 25000, 0%; between 25000 and 34000, then 50%, above 34000 = 85%.
Married Filing Jointly: less than 32,000 = 0%, between 32000 and 44000 = 50%, > 44000, then 85%.
Note: provisional income is not inflation adjusted.

The resulting percentage of SS Benefits is subject to ordinary income tax rate.
Note: The calculation assumes there's no state tax for SS benefits.
Note: Roth IRA distributions are not included in the provisional income calculation.

Age	Year	Salary	401k Contrib	Roth 401k Contrib	RMD	Spending	Roth Conversion	Tax Deferred Balance	Roth Balance	Investment	Medicare	Social Security	Taxes
{{yearly.age}}	{{yearly.year}}	{{toDollar(yearly.salary)}}	{{toDollar(yearly.k401)}}	{{toDollar(yearly.roth401k)}}	{{toDollar(yearly.rmd)}}	-{{toDollar(yearly.spending)}}	{{toDollar(yearly.dist)}}	{{toDollar(yearly.pretaxBalance)}}	{{toDollar(yearly.roth)}}	{{toDollar(yearly.investment)}}	-{{toDollar(yearly.medicare)}}	{{toDollar(yearly.ss)}}	-{{toDollar(yearly.tax)}}

Projected Tax Rates

Calculated with historical 1.7% increase in bracket ceilings each year, and accounted for 2025 trump tax (Tax Cuts and Jobs Act) brackets.

Year

Rate

Summary

Current year {{new Date().getFullYear()}} (age {{data.person.age}})

Your current net worth is ({{toDollar(data.person.roth+data.person.investment+data.person.pretaxBalance)}}.)

Retirement year {{data.person.retirement.year}} (age {{data.person.retirement.age}})

When you retire, your net worth will be {{toDollar(data.person.retirement.roth+data.person.retirement.pretaxBalance+data.person.retirement.investment)}}: you'll have {{toDollar(data.person.retirement.investment)}} in your post-tax investment accounts, {{toDollar(data.person.retirement.roth)}} in your Roth IRA/401k accounts, and {{toDollar(data.person.retirement.pretaxBalance)}} in your tax deferred traditional retirement accounts.

Your current retirement plan cannot get you to {{data.person.retirement.age}}, your post-tax balance will be {{toDollar(data.person.retirement.investment)}}, try adjusting your retirement plan!

After retirement, all your spending, including taxes that you need to pay will come from your post-tax investment account until you reach the age of {{data.noPenaltyWithdraw.age}}, which means that you'll need to pay capital gain taxes for the amount drawn.

Note: the calculation assumes 50% withdraws from post-tax investment accounts are capital gains
Note: For ease of calculation, age 60 is used, instead of 59.5

Penalty free withdraw year {{data.noPenaltyWithdraw.year}} (age {{data.noPenaltyWithdraw.age}})

After you've reached the age of {{data.noPenaltyWithdraw.age}} (59.5), your net worth will be {{toDollar(data.noPenaltyWithdraw.roth+data.noPenaltyWithdraw.pretaxBalance+data.noPenaltyWithdraw.investment)}}: you'll have {{toDollar(data.noPenaltyWithdraw.investment)}} in your post-tax investment account, {{toDollar(data.noPenaltyWithdraw.roth)}} in your Roth IRA/401k accounts, and {{toDollar(data.noPenaltyWithdraw.pretaxBalance)}} in your tax deferred traditional retirement accounts.
You can start withdrawing funds from pretax accounts without penalty, however, you'll pay ordinary income tax for the withdraws. At this time, instead of selling investments from post-tax accounts to cover taxes and spending, the funds should come from your pretax accounts. The step-up rule allows you to pass down your brokerage investment balance to your heir without incurring capital gain tax.

Your current retirement plan cannot get you through {{data.noPenaltyWithdraw.age}} where you can withdraw from pretax accounts without penalty. Your post-tax savings is {{toDollar(data.noPenaltyWithdraw.investment)}}, You have {{toDollar(data.noPenaltyWithdraw.pretaxBalance)}} in pretax accounts, consider adjusting your plan, or look into "55 rule" or "72t" for early withdraw.

Social Security benefit starting year {{data.person.ss.year}} (age {{data.person.ss.age}})

You indicated that you want to start receiving the social security benefit at the age of {{data.person.ss.age}}, and the monthly benefit will be {{toDollar(data.person.ss.perMonth)}}.

Required Minimum Distribution year {{data.rmd.year}} (age {{data.rmd.age}})

Your pretax retirement accounts will have {{toDollar(data.rmd.pretaxBalance)}}

Good Job

You'll be required to take out {{toDollar(data.rmd.rmd)}} from your pretax accounts this year, your estimated tax bill will be {{toDollar(data.rmd.tax)}} for withdraw amount of {{toDollar(data.rmd.dist)}}.

End of life year {{data.person.deceased.year}} (age {{data.person.deceased.age}})

When you die, your net worth will be {{toDollar(data.person.deceased.roth+data.person.deceased.pretaxBalance+data.person.deceased.investment)}}: you'll have {{toDollar(data.person.deceased.investment)}} in your post-tax investment accounts, {{toDollar(data.person.deceased.roth)}} in your Roth IRA/401k accounts, and {{toDollar(data.person.deceased.pretaxBalance)}} in your tax deferred traditional retirement accounts.

Tip: How much money you will end up with is what matters, not how much taxes you will pay.