401(a) Calculator

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Our specialized 401(a) calculators are designed to simplify the financial aspect of retirement for you. The 401(a) Growth Calculator helps you project the growth of your 401(a) retirement plan based on your contributions, employer matching, and expected annual returns. This tool is ideal for understanding how your retirement savings can grow and evolve over time. On the other hand, our 401(a) Distribution Calculator provides insights into how you can strategically withdraw from your 401(a) during retirement using annuities.

401(a) Savings Calculator

Our 401(a) Savings Calculator is designed to provide you with clear projections of how your investments will mature based on your initial amount, contribution frequency, and interest rates. This tool empowers you to make informed decisions and adjust your savings strategy to meet your financial goals efficiently.

Input your annual salary, the percentage you would like to contribute, any projected salary increases, your current age, the age you wish to retire, and the projected rate of return. You can also add any employee matching you have available. The calculator will then show you your projected amount of savings at the age you wish to retire.

401(a) Payout Calculator In Retirement

Use our 401(a) retirement calculator to see how much contractually guaranteed yearly income you can receive for the rest of your life using your 401(a) balance.

To use the calculator simply:

  1. Enter your age.
  2. Input your resident state.
  3. Input your current 401(a) balance,
  4. When would you like your payments to begin (Start My Benefits)?
401A Retirement Plan

401(a) Basics

What It is

A 401(a) is a type of employer-sponsored retirement plan that allows for contributions from the employer, employee, or both in the form of either percentages or fixed dollar amounts. As of 2024, the contribution limit is $69,000. The total contributions from employee or employer match may not exceed that limit.

Who Can Have It

Employees who typically participate in the 401(a) plan work for government agencies, educational institutions, and non-profit organizations. This includes but is not limited to: government employees, teachers, administrators, and support staff.

How It Works

The features of a 401(a) plan are nearly identical to that of a 401(k) plan, which is more common in for-profit industries. The one exception is that employees cannot contribute to their 401(k) plans through payroll deductions.

If an individual leaves an employer, they can still maintain ownership of the funds by transferring them into a different 401(k) plan or individual retirement account (IRA).

Employers can have several 401(a) plans with varying eligibility requirements, contribution levels, and vesting schedules. Employers set up these plans to incentivize employee retention. The employer manages the plan and sets how much employees can contribute.

The minimum requirement to participate in a 401(a) plan is usually two years of employment and 21 years old; however, this can differ based on employer.

401A Payout Calculator

401(a) Withdrawal Methods In Retirement

When it comes to accessing your funds in retirement, the 401(a) offers several methods:

  1. Lump Sum: Some plans allow you to withdraw your money in one lump sum. This can be beneficial if you have immediate expenses or an alternative investment strategy for your retirement funds.
  2. Annuity Payments: Many 401(a) plans offer the option to convert your savings into an annuity, providing a steady stream of income over a set number of years or for your lifetime.
  3. Regular Distributions: Similar to a 401(k), you can opt to take distributions on a regular schedule, such as monthly or annually. This can help simulate a paycheck during your retirement years.
  4. Rollover: You have the ability to rollover your 401(a) plan into an IRA or an IRA annuity.

It’s important to note that withdrawals from a 401a are subject to ordinary income tax, and early withdrawals before the age of 59½ may incur a 10% penalty, similar to other tax-advantaged retirement accounts.

Benefits Of A Rollover To An IRA Annuity

We reccomend rolling over your 401(a) plan into an IRA annuity with a guaranteeed lifetime withdrawal benefit for several reasons:

  • Lifetime Guarantee: The annuity is contractually guaranteed for the rest of your life. This automates the financial portion of your retirement and you never have to worry about running out of money.
  • Liquidity: If you were to choose the annuity option offered by your employer you will get monthly payments for the length of the contract, however, you lose any access to those retirement funds. With an IRA annuity with GLWB you retain control over your money providing liquiditiy in case of an emergency where you would need access to those funds.
  • Interest: Your retirement income will continue to grow as it earns interest for you.
  • Death Benefits: Any remaining balance left will be passed on to your beneficaries.
  • Joint Life Payout Options: IRA annuities typically offer joint life payout options, allowing retirees to provide for their spouses. If you pass away, your spouse can continue receiving benefits.
  • Inflation Protection: Some IRA annuities offer inflation adjustment options. This feature helps to protect your retirement income from inflation.
401A Calculator

Next Steps

Whether you’re projecting the growth of your 401(a) plan or planning your withdrawals in retirement, these calculators provide essential insights that aid in making informed decisions. If you need further assistance or wish to explore more personalized strategies, feel free to contact us for a free quote.

Need Help With Your 401(a) Plan?

Get help or a quote from a licensed financial professional. This service is free of charge.

Contact Us

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

Scroll to Top