How to use it
- Enter Starting amount.
- Enter Annual rate %.
- Enter Years.
- Enter Compounds / year.
- Enter Monthly contribution.
The formula
Contributions grow and are withdrawn tax-free in retirement.
Worked example
Decades of tax-free growth can be very valuable.
Frequently asked questions
Roth vs traditional?
Roth is taxed now, tax-free later.
Are there limits?
Annual contribution and income limits apply.
Tips
- Start early; a decade of compounding is hard to replace.
- Always capture any employer match in full.
- Revisit your plan yearly as income changes.
Key terms
- Nest egg
- Total retirement savings.
- Drawdown
- Withdrawing from a pot over time.
- Match
- Employer contributions to your plan.