Taxable vs Tax-Advantaged Savings Calculator

An employer match adds money that is not available in an unmatched taxable account, subject to the plan's vesting rules. That immediate benefit can outweigh differences in investment options or later tax treatment.

Qualified Roth withdrawals are tax-free, while a taxable account can create annual tax on interest and dividends plus capital-gains tax when investments are sold. Roth contributions and withdrawals remain subject to eligibility and distribution rules.

Taxable accounts have no retirement-account contribution ceiling, provide flexible access, and can receive long-term capital-gain rates and a basis adjustment at death. They can be appropriate after tax-advantaged space is used or for goals before retirement.

Interest on qualifying municipal bonds is generally excluded from federal income tax, but capital gains are taxable and state treatment depends on the issuer and residence. Tax-exempt interest can also affect calculations such as Medicare IRMAA.