Understanding the math
This quiz groups your savings into three tax buckets based on when taxes are generally paid:
Taxed nowChecking, savings, CDs, money market and regular brokerage accounts. Interest, dividends and gains can be taxed each year or when you sell.
Taxed laterTraditional (pre-tax) 401(k), 403(b), 457, TSP, traditional, SEP and SIMPLE IRAs. Withdrawals are generally taxed as ordinary income.
Tax-advantaged when rules are metRoth IRAs, Roth 401(k)s and 403(b)s, HSAs used for qualified medical expenses, and cash value life insurance under IRS Code Section 7702 (sometimes called a 7702 plan), accessed within policy and tax rules.
Questions 1 to 3 ask for a range or an exact amount for each bucket. An exact amount is used as entered (from $0 to $100,000,000). Because ranges aren't exact, the quiz turns each range into one representative amount: None counts as $0, Under $10k as $5,000, $10k–$50k as $30,000, $50k–$250k as $150,000 and Over $250k as $400,000. Answers marked Not sure, or left blank, are left out. The quiz then adds the representative amounts together and divides each bucket's amount by that total to get its share, rounded to the nearest whole percent (so shares may not add to exactly 100%).
Questions 4 and 5 don't change the percentages. They add context: where new savings are going, and roughly when you expect to draw on your savings.
Worked example: the mid-career saver
The mid-career example answers $10k–$50k for taxed now, $50k–$250k for taxed later and Under $10k for tax-advantaged when rules are met.
| Bucket | Representative amount | Share of total |
|---|
| Taxed now | $30,000 | $30,000 ÷ $185,000 ≈ 16% |
| Taxed later | $150,000 | $150,000 ÷ $185,000 ≈ 81% |
| Tax-advantaged when rules are met | $5,000 | $5,000 ÷ $185,000 ≈ 3% |
| Total | $185,000 | 100% |
Because 81% is at least 60%, the quiz labels this mix Mostly taxed later. In that example, most withdrawals in retirement would generally be taxed as income in the year they're taken.
What this quiz does not include
The estimate doesn't know your exact balances, tax bracket now or later, state taxes, early-withdrawal penalties, required minimum distributions, employer vesting, or other resources such as pensions, Social Security or home equity. Tax rules also change over time. Use the result as a conversation starter, not a plan. If you'd like to go through your own accounts, you can request an appointment.
Frequently asked questions
What are the three tax buckets?
It's a simple way to group savings by when taxes are generally paid. Taxed now: checking, savings, CDs and regular brokerage accounts, where interest, dividends and gains can be taxed each year or when you sell. Taxed later: traditional (pre-tax) 401(k), 403(b), 457 and TSP accounts and traditional IRAs, where withdrawals are generally taxed as income. Tax-advantaged when rules are met: Roth accounts, HSAs and cash value life insurance, where qualified withdrawals or access within the rules are generally not taxed. (Traditional accounts have tax advantages too; here the term means money that can generally be accessed without income tax.)
Should I pick a range or enter an exact amount?
Either works, and you can mix them. Ranges keep the quiz quick: each one is turned into a representative amount (Under $10k counts as $5,000, $10k–$50k as $30,000, $50k–$250k as $150,000 and Over $250k as $400,000), so the result is a rough picture. Choose Enter exact amount for any bucket to use your actual balance, from $0 to $100,000,000, for a more precise mix.
Where do Roth 401(k)s, HSAs and cash value life insurance fit?
All three go in the tax-advantaged bucket, where the tax benefits apply only when the rules are met. Qualified Roth withdrawals are generally not taxed, though employer contributions to a Roth 401(k) are often pre-tax, so check your statement. HSA withdrawals are generally not taxed when used for qualified medical expenses. Cash value life insurance that qualifies under IRS Code Section 7702 (sometimes called a 7702 plan) can generally be accessed through policy loans and withdrawals up to what you paid in without income tax, if the policy stays in force and isn't a modified endowment contract. Loans reduce the death benefit.
Is one bucket better than the others?
This quiz doesn't say. Each bucket has different tax features, access rules and trade-offs, and what fits depends on your income, tax rates now and later, timeline, goals and other circumstances. Tax laws also change. The quiz simply shows where your savings appear to sit today so you can ask better questions. A licensed financial professional or tax advisor can walk through your specific situation.
What if I answered “Not sure”?
A bucket marked Not sure, or left unanswered, is left out of the mix, and the results say so. For example, if you're not sure about your pre-tax retirement savings, the percentages only compare your other two buckets. Account statements, your plan's website or your HR benefits portal usually show whether money is pre-tax, Roth or taxable.
Is my information saved?
No. The quiz runs entirely in your browser. Your answers aren't saved, stored or sent to NeoPenn Life Strategies LLC, and they aren't included in analytics. If you refresh or close the page, your answers are cleared and the example answers load again.
Is this tax or investment advice?
No. It's an educational tool that shows a rough estimate based only on your answers. It doesn't consider tax brackets, state taxes, penalties, required minimum distributions or your full financial picture, and it isn't a recommendation to open, convert or move any account or to buy or change any insurance policy. For guidance on your situation, talk with a licensed financial professional or a tax advisor.
Important: This quiz is for general education and information only. It is not tax, legal, insurance or investment advice, and it is not an offer, solicitation or recommendation to buy, sell, open, convert, surrender or move any account, policy or product.
Results are rough, hypothetical estimates based only on the ranges you choose, using one representative amount per range. They do not reflect your actual balances, tax rates, state taxes, penalties, required minimum distributions or other circumstances. Descriptions of how accounts are taxed are general and simplified; rules, limits and eligibility vary by person and account, and tax laws can change. Access to life insurance cash value depends on the policy's terms; loans and withdrawals reduce cash value and death benefit, and can become taxable, for example if a policy lapses or is a modified endowment contract. Life insurance requires qualification and has costs.
Consult a licensed financial professional and a qualified tax advisor about your situation. Your answers are processed in your browser and are not saved or sent to NeoPenn Life Strategies LLC.
