401k vs IUL Calculator — See What You Actually Keep

Your Retirement Snapshot

Enter your numbers below. We'll show you the tax reality — and a different path.

Your Current Age

Retirement Age

Current 401k Balance

All 401k / traditional IRA accounts combined

Annual 401k Contribution

Including any employer match

Expected Growth Rate

Withdrawal Rate in Retirement

Retirement Tax Bracket

Based on your withdrawal + other income sources

State Income Tax Rate

Years in Retirement

Typical: 25-35 years

Compare with IUL (tax-free alternative)

IUL COMPARISON

Annual IUL Premium

How much you'd fund into an IUL per year

IUL Average Crediting Rate

Net of policy costs & COI charges

Index Loan Rate

Your cash value still earns the crediting rate — you keep the spread

🚨 Your 401k Tax Reality

Here's what happens when you start withdrawing...

401k at Retirement

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Annual Withdrawal

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You Actually Keep

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Effective Tax Rate

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📋 Annual Tax Breakdown

Federal Income Tax —

State Income Tax —

Medicare Surcharge (IRMAA) —

Total Annual Taxes —

💀 Lifetime Tax Bill (30 years)

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Money YOU saved. Money the government takes.

⚔️ 401k vs. IUL: Side by Side

Same person, same income — two completely different retirement outcomes

🔴 401k Path

Balance at Retirement —

Annual Withdrawal —

Annual Taxes —

Net Annual Income —

Lifetime Taxes —

Total Kept Over Retirement

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🟢 IUL Path

Cash Value at Retirement —

Annual Tax-Free Income —

Annual Taxes $0

Net Annual Income —

Lifetime Taxes $0

Total Kept Over Retirement

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💰 Money You Actually Keep (Lifetime)

401k Path —

IUL Path —

Tax-Free Advantage Over Your Retirement

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📌 Assumptions & Fine Print ▾

401k grows at the selected rate before retirement, withdrawals use the 4% rule
IUL crediting rate is the net rate after cost of insurance (COI) and policy charges
IUL income is modeled as policy loans — tax-free under IRC §7702 when properly structured
IUL uses index loans — your cash value still earns the crediting rate while borrowed, creating a spread (e.g., 6.5% earn - 5% loan = 1.5% positive spread)
No employer match is modeled for IUL (only 401k gets the employer match)
IUL requires proper design (minimum death benefit, max-funded) — a poorly designed policy will underperform
This calculator is for educational purposes only. Results are estimates, not guarantees
Actual IUL performance depends on carrier, policy design, funding level, and market conditions

Want to See YOUR Real Numbers?

This calculator uses general estimates. A personalized analysis looks at your specific tax situation, employer match, existing policies, and goals to show you exactly what's possible.

I'm not a guru. I'm a dad with a 9-5 who figured this out for my own family. Happy to walk you through it.

📞 Book a Free Strategy Call
Or download the free 401k Tax Bomb Guide →

💣 The 401k Tax Bomb Calculator