The Annual Rate of Return is a hypothetical example used for illustrative purposes only. It is not representative of any specific investment or combination of investments. This worksheet provides estimates based on certain assumptions, including Expected Tax Bracket During Retirement and Tax Bracket While Contributing. Please work with your tax, legal, or accounting professional for tax bracket information. The rate of return on investments will vary over time, particularly for longer-term investments. Investments that offer the potential for high returns also carry a high degree of risk. Actual returns will fluctuate.

Once you reach age 73, you must begin taking required minimum distributions (RMDs) from your 401(k), traditional IRA or any other defined contribution plan in most circumstances. Withdrawals are taxed as ordinary income and, if taken before age 59½, may be subject to a 10% federal income tax penalty.