IUL vs. 401(k) Visualizer — JAGLOGIC
JAGLOGIC

IUL vs. 401(k) Visualizer

"How much of your retirement actually belongs to the IRS?"
$
%
Estimated Retirement Tax Rate (401k withdrawals)
25%

Drag to adjust the tax rate applied to 401(k) distributions at retirement. IUL distributions are assumed tax-free via policy loans.

401(k) — Traditional
Pre-Tax Growth
Contributions reduce taxable income today, but every dollar withdrawn in retirement is taxed as ordinary income.
Gross balance at retirement—
Total contributions—
IRS tax haircut—
You keep (after tax)—
IUL — Indexed Universal Life
Tax-Free Growth
Contributions are after-tax, but growth and distributions via policy loans are income-tax-free in retirement.
Gross cash value at retirement—
Total contributions (after-tax)—
IRS tax on distributions$0
You keep (tax-free)—
IUL — You Keep
—
100% tax-free at retirement
401(k) — You Keep
—
After IRS tax haircut
IUL Advantage
—
More in your pocket
IRS Claims
—
From your 401(k) alone
IUL — Tax-Free Growth
401(k) — Pre & Post-Tax
Year-by-year comparison
Age IUL Value 401(k) Gross 401(k) After Tax IUL Advantage
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The IRS is your 25% silent partner.
At a 25% tax rate, for every $4 you grow in a 401(k), the government takes $1. An IUL structured correctly means $0 to the IRS on your distributions — keeping your entire retirement working for you.

This tool is for educational and illustrative purposes only. IUL policies involve insurance costs, fees, and participation rates that may reduce actual returns. 401(k) tax rates vary based on income, filing status, and legislation. This does not constitute financial or tax advice. Consult a licensed financial professional.