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Salary Paycheck Calculator

If you’re hesitant to begin saving in your 401(k) plan because you are worried about how it will affect your paycheck, you’re not alone. This calculator shows the effect of increasing contributions on your take-home pay.

How pre-tax 401(k) contributions impact your paycheck

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Take home pay after tax
401(k) contribution
Reduction in take home pay
Your 3 year 401(k) growth
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Frequently asked questions

How to calculate my paycheck

In addition to helping you determine the effect of 401(k) contributions on your take-home pay, a Paycheck Calculator will let you know if you’re deducting the correct amount of money from your check to cover your tax obligation. If you received a significant amount of investment income not subject to withholding, you can elect to have more money withheld from your paycheck, so you’re not hit with a big surprise tax bill due in April.

While a refund at the end of the year can be a welcome bonus, you also don’t want to overpay, as this may unnecessarily stretch your money too thin throughout the year. Keep in mind, you are not earning interest on excess money paid while the IRS hangs onto it. Adjusting your tax withholding can help you welcome a new baby, get married, pay for divorce, or buy a new house.

What is my contribution rate?

This is the percentage of your annual salary you contribute to your 401(k) plan each year. While your plan may not have a deferral percentage limit, this calculator limits deferrals to 75% to account for FICA (Social Security and Medicare) taxes. This rule may not apply to all plans.

How do I find my tax rates taken from my paycheck?

Each paycheck will include deductions for:

- The Federal Insurance Coverage Act (FICA) – which covers Social Security and Medicare.
- Federal tax (which could range from 10 to 37 percent)
- State tax (which could range from 1-10.75 percent)
- Local tax (which could range from 4-10 percent)

What is the annual rate of return in this calculator?

This is the annual rate of return you expect from your retirement account. The actual rate of return is largely dependent on the types of investments you select. The Standard & Poor's 500® (S&P 500®) for the 10 years ending December 31st 2023, had an annual compounded rate of return of 15.2%, including reinvestment of dividends. From January 1, 1970 to December 31st 2023, the average annual compounded rate of return for the S&P 500®, including reinvestment of dividends, was approximately 10.9% (source: 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 financial institution 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 investment funds and/or investment companies may charge.

Contact Ubiquity to plan for a bright future

We hope you liked this handy and free Salary Paycheck Calculator tool. Ubiquity is a leading provider of 401(k) plans geared toward self-employed individuals and small businesses. We can help you choose the best plan based on your goals and get you set up in just a few minutes. Contact us to get started.

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