401(k) Calculators
401(k) Tax Deduction Calculator
See exactly how much a Traditional 401(k) contribution actually saves you in taxes — plus, if you've inherited a 401(k), exactly when the IRS 10-year clock runs out.
Tax savings from your contribution
Roth contributions provide no current-year tax deduction — this calculator estimates savings for Traditional contributions only.
Inherited 401(k): your 10-year deadline
This shows the 10-year deadline only, not a full RMD withdrawal schedule — if the original owner had already started required minimum distributions before death, you may also owe annual RMDs during years 1–9. Consult a tax professional for your specific situation.
How the 401(k) tax deduction works
A 401k tax deduction calculator, 401k tax savings calculator, or tax and 401k calculator question is about one specific benefit: a Traditional 401(k) contribution reduces the income you're taxed on this year, dollar for dollar. Because federal tax brackets are progressive, the actual savings depend on which bracket(s) your contribution is sitting in — the calculator above computes this precisely, the same way a tax return would, rather than applying one flat percentage to the whole contribution.
Inherited 401(k) tax rules
A 401k inheritance tax calculator question is really asking about the SECURE Act's 10-year rule — a completely different topic from contributing to your own account. How it works depends entirely on your relationship to the person who died:
| Beneficiary type | Rule |
|---|---|
| Spouse | Most flexibility — can roll into your own IRA/401(k), remain a beneficiary, or elect the 10-year rule |
| Eligible Designated Beneficiary (minor child, disabled, chronically ill, or ≤10 years younger) | Can stretch distributions over their own life expectancy — no 10-year deadline |
| Other non-spouse (adult child, sibling, friend) | Must fully empty the account by December 31 of the 10th year after death |
If the original account owner had already started required minimum distributions before they died (generally meaning they were 73 or older), most beneficiaries subject to the 10-year rule must also take annual RMDs during years 1 through 9 — not just empty the account by year 10. Missing the final deadline triggers a 25% excise tax on the amount that should have been withdrawn.
What this calculator doesn't do
The inherited-account tool above tells you your deadline, not a full year-by-year withdrawal plan — annual RMD amounts for years 1–9 (when they apply) depend on IRS life-expectancy tables and the beneficiary's age, which is a more involved calculation deserving its own dedicated tool. Use this to understand your deadline and general category; talk to a tax professional before choosing a specific withdrawal strategy.
Inherited 401(k) rules reflect the SECURE Act of 2019, SECURE 2.0, and IRS clarifications through 2026, including the 25% excise tax under IRC Section 4974 (reduced from the pre-2023 50% rate). This is a planning estimate, not tax advice.
Frequently asked questions
Before you file, or before you decide what to do with an inheritance.
How much does a 401(k) contribution actually save on taxes?
It depends on your marginal tax bracket and how much of the contribution falls into each bracket — not a single flat percentage. The calculator above computes your actual bracket-by-bracket savings.
Do Roth 401(k) contributions provide a tax deduction?
No — Roth contributions are made with after-tax money and provide no current-year deduction. The tradeoff is tax-free qualified withdrawals in retirement.
What happens if I miss the 10-year deadline on an inherited 401(k)?
The IRS can assess a 25% excise tax on the amount that should have been withdrawn but wasn't — reduced from a 50% penalty under older rules. The penalty can potentially be reduced further if corrected within a certain window.
Is there an early withdrawal penalty on an inherited 401(k)?
No — the 10% early withdrawal penalty never applies to inherited retirement accounts, regardless of the beneficiary's age. Ordinary income tax on Traditional account withdrawals still applies.
Can a surviving spouse avoid the 10-year rule entirely?
Yes, in most cases — a spouse can roll the inherited 401(k) into their own IRA or 401(k) and treat it as their own, resetting the rules to their personal RMD schedule instead of the 10-year deadline. This must generally be elected within a limited window, so timing matters.