Retirement Tax Diversification Planner
"Find your ideal balance between Roth, Traditional, and Taxable accounts, and minimize retirement tax risk."
This planner helps you visualize how distributing your savings across Roth, Traditional, and Taxable investment accounts can reduce your tax burden and improve retirement flexibility. Explore different mixes to see how each affects your after-tax income, effective tax rate, and retirement longevity.
Total yearly contribution across all accounts
For compounding growth
Annual investment growth
Used for pre-tax contributions
Post-retirement taxation
For taxable accounts
Account Allocation
Post-tax savings share
Pre-tax savings share
Already-taxed, capital gains applicable
Tax diversification means spreading your retirement savings across accounts with different tax treatments, Roth (tax-free), Traditional (tax-deferred), and Taxable (capital gains). This gives you flexibility to withdraw strategically in retirement, keeping your effective tax rate low.
Why It Matters:
- Tax laws and rates change over decades.
- Mixing account types hedges against future tax uncertainty.
- Balancing "when you pay taxes" can improve net income by 10–25%.
| Scenario | Roth | Traditional | Taxable | When It's Best |
|---|---|---|---|---|
| High current tax, expect lower later | 20% | 60% | 20% | Traditional-heavy |
| Low current tax, expect higher later | 60% | 20% | 20% | Roth-heavy |
| Uncertain future taxes | 40% | 40% | 20% | Balanced mix |