ÿþ<HTML> <HEAD> <TITLE>401(k) Spend It or Save It Calculator</TITLE> <META HTTP-EQUIV="Content-Type" CONTENT="text/html; charset=iso8859-1"> <META NAME="description" CONTENT="Financial Calculators, ©1998-2010 KJE Computer Solutions, LLC. For more information please see http://www.dinkytown.net"> <STYLE> <!-- BODY, TABLE, TD, TH, UL, OL, DD, DL, P, BR { font-family: helvetica, arial, sans-serif; font-size: 10pt; } H1 { font-family: helvetica, arial, sans-serif; font-size: 13pt; font-weight: bold; } DT { font-family: helvetica, arial, sans-serif; font-size: 10pt; font-weight: bold; } P.footer { font-family: helvetica, arial, sans-serif; font-size: 9pt; } DIV.large { font-family: helvetica, arial, sans-serif; font-size: 13pt; font-weight: bold; } --> </STYLE> </HEAD> <!-- Financial Calculators, ©1998-2008 KJE Computer Solutions, LLC. 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For more information please see: <A HREF="http://www.dinkytown.net">http://www.dinkytown.net</A> --> <H1>401(k) Spend It or Save It Calculator</H1><P> 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.<P><CENTER> <!--[if IE]><object name="calculator" classid="clsid:8AD9C840-044E-11D1-B3E9-00805F499D93" codebase="http://java.sun.com/update/1.6.0/jinstall-6-windows-i586.cab#Version=1,4,0,0" height="450" width="565"><param name="code" value="Rollover401k" /><param name="archive" value="dinkytown.jar" /> <P style="font-size:1px; color: #ffffff" line-height: 1px><![endif]--><![if !IE]><P style="font-size:1px; color: #ffffff" line-height: 1px><![endif]></P><![if !IE]><APPLET name="calculator" code="Rollover401k.class" align="baseline" WIDTH="565" HEIGHT="450" archive="dinkytown.jar"><![endif]> <PARAM name="CURRENT_AGE" value="29"> <PARAM name="AGE_OF_RETIREMENT" value="65"> <PARAM name="STARTING_AMOUNT" value="1000"> <PARAM name="RATE_OF_RETURN" value="8"> <PARAM name="STATE_TAX" value="5.00"> <PARAM name="FEDERAL_TAX" value="25.00"> <!--CUSTOM PARAMETERS--> <PARAM name="TEXT_FOR_REPORT" value="<HTML> <HEAD> <TITLE>401(k) Spend It or Save It Calculator</TITLE> <META HTTP-EQUIV='Content-Type' CONTENT='text/html; charset=iso8859-1'> <META NAME='description' CONTENT='Financial Calculators, &QCPQ;1998-2010 KJE Computer Solutions, LLC. For more information please see http://www.dinkytown.net'> <STYLE> <!-- BODY, TABLE, TD, TH, UL, OL, DD, DL, P, BR { font-family: helvetica, arial, sans-serif; font-size: 10pt; } H1 { font-family: helvetica, arial, sans-serif; font-size: 13pt; font-weight: bold; } DT { font-family: helvetica, arial, sans-serif; font-size: 10pt; font-weight: bold; } P.footer { font-family: helvetica, arial, sans-serif; font-size: 9pt; } DIV.large { font-family: helvetica, arial, sans-serif; font-size: 13pt; font-weight: bold; } --> </STYLE> </HEAD> <BODY bgcolor='#FFFFFF' LINK='#003399' VLINK='#666666' BGCOLOR='#FFFFFF'> <CENTER><table border=0 bgcolor='#000000' width=468 cellspacing=1 cellpadding=0><tr><td width='100%'><table bgcolor='#FFFFDD' border=0 width=468 cellspacing=1 cellpadding=5><tr><td width='100%' align=center valign=middle><DIV class=large>401(k) Spend It or Save It Calculator</DIV></td></tr></table></TD></TR></TABLE></CENTER> <H1>Your 401(k) Options: </H1>**GRAPH**<P>Leaving your balance with your current employer or a direct rollover to an IRA leaves you with the largest balance at retirement. With either of these options you will have no penalty and no current taxes due. If you receive an annual return of RATE_OF_RETURN for YEARS_UNTIL_RETIREMENT years, you should have a balance of VALUE_END1 when you retire at age AGE_OF_RETIREMENT. <P><CENTER><table border=0 bgcolor='#000000' width=95% cellspacing=1 cellpadding=0><tr><td width='100%'><table bgcolor='#FFFFFF' border=0 width=100% cellspacing=1 cellpadding=10> <TR BGCOLOR='#CCCCCC'><TD width=50%><CENTER><B>Save It</B></CENTER></TD><TD width=50%><CENTER><B>Spend It</B></CENTER></TD></TR> <TR><TD valign=top><B>Keep your 401(k) balance in your employer's plan or roll it to an IRA.</B><P><b>Advantages</b><BR>If you keep your money in your 401(k) or roll it to an IRA there are no penalties or federal tax withholding. In addition, all earnings on the account are tax deferred until you begin making withdrawals at retirement.<P><b>Disadvantages</B><BR>Unless you are separated from service having reached age 55, you will generally be required to pay a 10% early withdrawal penalty to withdraw the money before you are 59 1/2.<P> <TABLE border=0 width=100%> <TR><TD><b>Early withdrawal penalty:</b></TD><TD>VALUE_PENALTY1</TD></TR> <TR><TD><b>Taxes due:</b></TD><TD>VALUE_TAXES1</TD></TR> <TR><TD><b>After taxes and penalties:</b></TD><TD>VALUE_START1</TD></TR> <TR><TD><b>Balance at retirement:</b></TD><TD>VALUE_END1*</TD></TR> </TABLE> <P class=footer>*This analysis uses participant's actual input values. We assume that all earnings for this option are tax deferred and no withdrawals are made until AGE_OF_RETIREMENT years of age.</P> </TD><TD width=50% valign=top><B>Cashout your entire 401(k) balance immediately.</B><P><b>Advantages</b><BR>You get immediate access to your account balance.<P><b>Disadvantages</B><BR>Unless you are separated from service having reached age 55, you will generally be required to pay a 10% early withdrawal penalty. In addition, your entire balance will be subject to income taxes in the year it was withdrawn. After taxes and the 10% penalty, it is not uncommon be left with less than 50% of your account balance.<P> <TABLE border=0 width=100%> <TR><TD><b>Early withdrawal penalty:</b></TD><TD>VALUE_PENALTY2</TD></TR> <TR><TD><b>Taxes due:</b></TD><TD>VALUE_TAXES2</TD></TR> <TR><TD><b>After taxes and penalties:</b></TD><TD>VALUE_START2</TD></TR> </TABLE> <BR> </TD></TR> </TABLE></TD></TR></TABLE></CENTER> <P><CENTER><table border=0 bgcolor='#000000' width=95% cellspacing=1 cellpadding=0><tr><td width='100%'><table bgcolor='#FFFFFF' border=0 width=100% cellspacing=1 cellpadding=5> <TR BGCOLOR='#CCCCCC'><TD COLSPAN=4><CENTER><B>Input Values</B></CENTER></TD></TR> <TR><TD><b>Current 401(k) balance </b> </TD><TD> STARTING_AMOUNT </TD><TD><b>Annual rate of return </b> </TD><TD> RATE_OF_RETURN </TD></TR> <TR><TD><b>Your current age </b> </TD><TD> CURRENT_AGE </TD><TD><b>Your age at retirement </b> </TD><TD> AGE_OF_RETIREMENT </TD></TR> <TR><TD><b>State income tax rate </b> </TD><TD> STATE_TAX</TD><TD><b>Federal income tax rate </b> </TD><TD> FEDERAL_TAX</TD></TR> </TABLE></TD></TR></TABLE></CENTER><P class=footer></P> <BR> <HR SIZE=1> <CENTER><P class=footer> 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 cannot 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. </P></CENTER><br><br> </BODY> </HTML> "> <H1><CENTER>This Financial Calculator requires SUN's Java"! Plug-in. If you see this message you will need to download SUN's Java"! Plug-in. This can be done automatically by clicking the yellow bar at the top of your browser and choosing  Install ActiveX Control . </CENTER></H1> <OL> You can also get SUN's Java"! Plug-in here: <A href="http://www.java.com/en/download/download_the_latest.jsp" target=_blank><b>Get the Java"! Plug-in!</b></A> <P>For more information about this Plug-in please visit: <A href="http://www.dinkytown.net/money/sunjvm.html" target=_blank><b>SUN's Java"! Plug-in</b></A> <BR>For more information these financial calculators please visit: <A href="http://www.dinkytown.net" target=_blank><b>Financial Calculators from KJE Computer Solutions, LLC</b></A> </OL><!--[if IE]></OBJECT><![endif]--><![if !IE]></APPLET><![endif]> </CENTER><CENTER><SCRIPT>document.write(showbuttons())</SCRIPT> <TABLE width=500 border=0><TR><TD><P class=footer>*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. Distributions are subject to income tax (distributions prior to age 59 1/2 may also be subject to a 10% additional tax penalty). You should consult your tax or legal advisor concerning your particular situation. </TD></TR></TABLE></CENTER> <H1>Definitions</H1><P><TABLE align='center' WIDTH="95%"><TR><TD><DL><!--DEFN_START--> <DT><B>Current age</B><DD>Your current age.<P> <DT><B>Age of retirement</B><DD>Age you wish to retire. We calculate the ending balance at retirement for each of your rollover options.<P> <DT><B>Federal income tax rate</B><DD>Consult the table below to determine your federal tax bracket. If you are unsure, the calculator will choose 25%. Please note that state taxes are entered in a separate entry field.<P> <CENTER> <TABLE WIDTH=90% BORDER=1> <TR class=tblheader><TD align=center colspan=5><b>Filing Status and Income Tax Rates 2010</b><P class=footer>Caution: Do not use these tax rate schedules to figure 2009 taxes. Use only to figure 2010 estimates. </P></TD></TR> <TR class=tblheader><TD align=center width="12%"><b>Tax rate</b></TD><TD align=center width="22%"><b>Married filing jointly<BR>or Qualified Widow(er)</b></TD><TD align=center width="22%"><b>Single</b></TD><TD align=center width="22%"><b>Head of household</b></TD><TD align=center width="22%"><b>Married filing separately</b></TD></TR> <TR class=tblrow><TD align=center width="12%"><b>10%</b></TD> <TD align=center width="22%"> $0 - 16,750</TD> <TD align=center width="22%"> $0 - 8,375</TD> <TD align=center width="22%"> $0 - $11,950</TD> <TD align=center width="22%"> $0 - 8,375</TD></TR> <TR class=tblrow2><TD align=center width="12%"><b>15% </b></TD> <TD align=center width="22%"> $16,751- 68,000</TD> <TD align=center width="22%"> $8,376- 34,000</TD> <TD align=center width="22%"> $11,951- 45,550</TD> <TD align=center width="22%"> $8,376- 34,000</TD></TR> <TR class=tblrow><TD align=center width="12%"><b>25%</b></TD> <TD align=center width="22%"> $68,001- 137,300</TD> <TD align=center width="22%"> $34,001- 82,400</TD> <TD align=center width="22%"> $45,551- 117,650</TD> <TD align=center width="22%"> $34,001- 68,650</TD></TR> <TR class=tblrow2><TD align=center width="12%"><b>28%</b></TD> <TD align=center width="22%"> $137,301- 209,250</TD> <TD align=center width="22%"> $82,401- 171,850</TD> <TD align=center width="22%"> $117,651- 190,550</TD> <TD align=center width="22%"> $68,651- 104,625</TD></TR> <TR class=tblrow><TD align=center width="12%"><b>33%</b></TD> <TD align=center width="22%"> $209,251- 373,650</TD> <TD align=center width="22%"> $171,851- 373,650</TD> <TD align=center width="22%"> $190,551- 373,650</TD> <TD align=center width="22%"> $104,626- 186,825</TD></TR> <TR class=tblrow2><TD align=center width="12%"><b>35%</b></TD> <TD align=center width="22%"> over $373,650</TD> <TD align=center width="22%"> over $373,650</TD> <TD align=center width="22%"> over $373,650</TD> <TD align=center width="22%"> over $186,825</TD></TR> </TABLE></CENTER> <CENTER>Source: http://www.irs.gov/pub/irs-drop/rp-09-50.pdf</CENTER> </DL> <DL> <DT><B>State income tax rate</B><DD>The current State marginal tax rate you expect to pay on any additional income (or taxable distributions). <P> <DT><B>Current 401(k) balance</B><DD>The starting balance or current amount you have invested or saved in your 401(k).<P> <DT><B>Annual rate of return</B><DD>The annual rate of return for your 401(k) account. The actual rate of return is largely dependent on the type of investments you select. For example, from December 1999 to December 2009, the average annual compounded rate of return for the S&P 500 was -0.6%, including reinvestment of dividends. From January 1970 to December 2009, the average annual compounded rate of return for the S&P 500, including reinvestment of dividends, was approximately 10.1% (source: www.standardandpoors.com). Since 1970, the highest 12-month return was 61% (June 1982 through June 1983). The lowest 12-month return was -43% (March 2008 to March 2009). Savings accounts at a bank may pay as little as 1% or less but carry significantly lower risk of loss of principal balances.<P>It is important to remember that these scenarios are hypothetical and that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are generally subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment. It is not possible to invest directly in an index and the compounded rate of return noted above does not reflect sales charges and other fees that funds and/or investment companies may charge.<P> <!--DEFN_END--></DL></TD></TR></TABLE> <BR> <HR SIZE=1> <CENTER> <P class=footer> 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 cannot 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. </P></CENTER> <BR> </BODY> </HTML>