401(k) Spend It or Save It Calculator 401(k) Spend It or Save It Calculator

401(k) Spend It or Save It Calculator

There are several ways to manage your 401(k) balance when you leave an employer. The most fundamental of which is should you spend it or save it? Depending on your age and tax bracket, making the wrong decision can cost you thousands of dollars both in taxes and lost earnings. This calculator helps illustrate the difference.


You may have one or more of the following options available for saving your money: rolling it into an IRA, moving it into your new employer's plan, or leaving it with your old employer. You should keep in mind that this amount represents pre-tax funds held within the retirement plan. Withdrawals are reported as income and are subject to ordinary income tax treatment (as opposed to capital gain or dividend income), and if made prior to age 59½, may be subject to an additional 10% federal income tax penalty. In addition, company imposed surrender charges may apply to certain withdrawals.

Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We can not and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues. This analysis is based on information and assumptions provided by you. Actual results will vary.

This is a hypothetical example used for illustrative purposes only. The information provided is not specific investment advice, a guarantee of performance, or a recommendation. Typically, withdrawals from tax-deferred investment options are taxed as ordinary income and any withdrawals taken prior to age 59-1/2 may be subject to an additional 10% federal tax penalty. A plan of continuous or systematic investing does not ensure a profit and does not protect against loss in declining markets. Certain tax-deferred investment options include mortality and expense charges, sales charges, and administrative fee, which would reduce the performance shown if they were accounted for. Lower maximum tax rates for capital gains and dividends could make the investment return for the taxable investment more favorable, thereby reducing the difference in performance between the accounts shown. One's timeframe and income tax brackets, both current and anticipated, should be considered when making financial decisions. Rates of return will vary over time, particularly for long-term investments. Investments offering the potential for higher rates of return also involve a higher degree of risk. Actual results will vary.

"AXA" is the brand name of AXA Equitable Financial Services, LLC and its family of companies, including AXA Equitable Life Insurance Company(NY,NY) and AXA Advisors, LLC(member SIPC) AXA S.A. is a French holding company for a group of international insurance and financial services companies, including AXA Equitable Financial Services, LLC. The obligations of AXA Equitable Life Insurance Company are backed solely by their claims-paying ability .

Information provided has been prepared from sources and data we believe to be accurate, but we make no representation as to its accuracy or completeness. Data and information is provided for informational purposes only, and is not intended for solicitation or trading purposes. Forefield, Inc is not an affiliate of AXA Equitable Life Insurance Company or AXA Advisors, LLC. Please consult your tax and legal advisors regarding your individual situation. Neither AXA Equitable Life Insurance Company, AXA Advisors nor any of the data provided by AXA Equitable Life Insurance Company, AXA Advisors or its content providers, such as Forefield, shall be liable for any errors or delays in the content, or for the actions taken in reliance therein. By accessing the www.axa.com website, a user agrees to abide by the terms and conditions of the site including not redistributing the information found therein.