Estimate the combined after-tax value of cash taken from a pension lump sum and money moved to a tax-deferred rollover account. The calculator treats the two portions separately, applies current tax to taxable cash, grows the rollover for the selected period, and applies an assumed future withdrawal tax. It does not treat mandatory withholding as final tax or model penalties, fees, required distributions, or investment volatility.
Cash now = (lump sum − rollover) × (1 − current tax rate)
Future rollover after tax = rollover × (1 + return)years × (1 − future tax rate)
Use the main result as a scenario estimate and compare it with alternative assumptions. Small changes in tax, return, inflation, or payment terms can compound into meaningful differences.
This is an educational estimate, not tax, investment, insurance, or legal advice. Actual taxes and contract benefits depend on jurisdiction and plan terms.
From a $500,000 offer, rolling over $400,000 and taking $100,000 cash taxed at 24% leaves $76,000 now. At 5% for 10 years and 22% future tax, combined estimated after-tax value is about $584,215.
This calculator assumes the direct rollover remains tax-deferred and is taxed later at the rate you enter.
No. Withholding is not necessarily the same as tax liability, so the model asks for a tax-rate estimate.
Yes. Set the rollover amount equal to the lump-sum offer if the distribution is eligible.
Only indirectly if you enter a return assumption net of fees.
No. Add any applicable penalty to your comparison separately.
| Portion | Tax treatment assumed |
|---|---|
| Cash portion | Current entered tax rate |
| Direct rollover | Tax-deferred during growth period |
| Future rollover value | Future entered withdrawal tax rate |