457 Savings Calculator

A 457 can be one of your best tools for creating a secure retirement. It provides you with two important advantages. First, all contributions and earnings to your 457 are tax-deferred. You only pay taxes on contributions and earnings when the money is withdrawn. Second, many employers provide matching contributions to your 457 account which can range from 0% to 100% of your contributions. The combined result is a retirement savings plan you can not afford to pass up.

Your 457 could be worth TOTAL_AT_END_OF_INVESTMENT after YEARS years.

This was calculated with your current contribution of CONTRIBUTE_ANNUAL per year and a current 457 balance of STARTING_AMOUNT. Your current plan has you contributing CONTRIBUTE_PERCENT of your annual salary up to the IRS annual maximum of CONTRIBUTE_MAXIMUM. **GRAPH**

Your 457 total also includes an employer match of EMPLOYER_MATCH of your contributions, up to EMPLOYER_MAX of your annual salary. Your current 457 plan has your employer contributing EMPLOYER_ANNUAL per year. To receive your employer's maximum match of EMPLOYER_DOLLARS, you should contribute at least EMPLOYER_CALC_MAX of your annual salary to your 457. Without your employer's match, your ending 457 would be reduced to NOMATCH_AT_END_OF_INVESTMENT.

Results Summary
Current 457 balance STARTING_AMOUNT
Years to invest YEARS
Annual rate of return RATE_OF_RETURN
Annual salary ANNUAL_SALARY
Expected annual salary increase SALARY_INCREASE
Percent to contribute CONTRIBUTE_PERCENT
Your 457 contribution* CONTRIBUTE_ANNUAL per year
Your employer's 457 match EMPLOYER_ANNUAL per year
This is a EMPLOYER_MATCH employer matchup to a maximum of EMPLOYER_MAX of your annual salary.
Total you will contribute TOTAL_AMOUNT_YOU_HAVE_PAID_IN
Total your employer will contribute TOTAL_AMOUNT_EMPLOYER_PAID_IN
Total at age AGE_OF_RETIREMENT TOTAL_AT_END_OF_INVESTMENT
Total without employer match NOMATCH_AT_END_OF_INVESTMENT

*Your total contribution for one year is based on your annual salary times the percent you contribute. However, your annual contribution is also subject to certain maximum total contributions per year. The annual maximum for 2014 is $17,500. Beginning at age 50 and higher, a "catch-up" provision allows you to contribute an additional $5,500 into your 457 account. It is also important to note that employer contributions do not affect an employee's maximum annual contribution limit.

457 Balance by Year

**REPEATING GROUP**

457 Savings Calculator Definitions

Annual salary
This is your annual salary from your employer before taxes and other benefit deductions. Since your contribution and company match are based on the salary paid to you by your employer, do not include any income you may receive from sources other than your employer.
Percent to contribute
This is the percentage of your annual salary you contribute to your 457 plan each year. This calculator limits your contribution to 50% of your salary.
Annual contribution limits
Your total contribution for one year is based on your annual salary times the percent you contribute. However, your annual contribution is also subject to certain maximum total contributions per year. The annual maximum for 2014 is $17,500. If you are age 50 or over, a 'catch-up' provision allows you to contribute an additional $5,500 into your 457 account. It is also important to note that employer contributions do not affect an employee's maximum annual contribution limit.

Current age
Your current age.
Age of retirement
Age you wish to retire. This calculator assumes that the year you retire you do not make any contributions to your 457. So if you retire at age 65, your last contribution occurs when you are actually 64.
Current 457 balance
The starting balance or current amount you have invested or saved in your 457.
Annual rate of return
The annual rate of return for your 457 account. This calculator assumes that your return is compounded annually and your deposits are made monthly. The actual rate of return is largely dependent on the types of investments you select. The S&P 500® for the 10 years ending Dec. 31st, 2013 had an annual compounded rate of return of 7.3%, including reinvestment of dividends. From January 1970 through the end of 2013, the average annual compounded rate of return for the S&P 500®, including reinvestment of dividends, was approximately 10.6% (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 0.25% or less but carry significantly lower risk of loss of principal balances.

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.

Employer match
An employer match is in addition to your annual contributions. It is based on a percentage of your annual contributions. This range can be anywhere from 0% to 100%.

For example, let's assume the employer matches 50% of the employee's contributions up to 6% of their salary. The employee earns $100,000 per year and contributes 10%. The results would be:

  • $10,000 from the employee
  • $3,000 from the employer (which is 50% of $6,000 or 6% of the annual salary)
  • Total: $13,000

Please read the definition for 'Employer maximum' for a detailed description of maximum employer matching contributions. It is important to note employer contributions do not affect the maximum annual deferral allowed to an employee. (The employee contribution plus any employer match cannot exceed the maximum allowed deferral.)

Employer maximum
This is the maximum percent of your salary matched by your employer regardless of the amount you decide to contribute. For example, let's assume your employer has a 50% match, up to a maximum of 6% of your annual salary. If you have an annual salary of $25,000 and contribute 6%, your annual contribution is $1,500. With a 50% match, your employer will add another $750 to your 457 account. If you increase your contribution to 10%, your annual contribution is $2,500 per year. Your employer match, however, is limited to the first 6% of your salary and remains at $750.


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