Cafeteria / 401(k) Tax Savings Analysis

Implementation of a Qualified Plan and/or Section 125 Cafeteria Plan can result in significant tax savings and benefits to both the employer and employee. Use the following calculator to estimate the potential savings generated by implementing one or both of these plans.
     
  Input and Assumptions

Input
  Average employee gross pay per pay period
Average employee state and federal tax rate: (%)
  Average employee post-tax retirement savings
  Average employee post-tax qualified expenses
Do you want to illustrate with same take-home pay? No   Yes
  Employer match on qualified plan savings
  Number of eligible employees
     
 

Any rate of return entered into the calculator to project future values should be a reasonable average return for the period. Rates of return will vary over time, and generally the higher the rate of return the higher the degree of risk.

The information provided here is to assist you in planning for your future. The accuracy of this calculator and its applicability to your circumstances is not guaranteed. Any analysis is a result of the information you have provided. Material discussed is meant for general illustration and/or informational purposes only and it is not to be construed as tax, legal, or investment advice. Although the information has been gathered from sources believed to be reliable, please not that individual situations can vary. Therefore, the information should be relied upon when coordianted with individual advice from qualified professionals.