Understanding the math
This quiz groups your savings into three tax buckets based on when federal income taxes are generally paid. State tax rules can differ; for example, some states tax HSAs differently.
Taxed nowChecking, savings, CDs, money market and regular brokerage accounts. Interest and dividends are generally taxed each year; capital gains are generally taxed when you sell.
Taxed later (tax-deferred)Traditional (pre-tax) 401(k), 403(b), 457, TSP, traditional, SEP and SIMPLE IRAs. These accounts have tax advantages today through possible contribution deductions and tax-deferred growth; withdrawals are generally taxed as ordinary income, except for any recovery of after-tax basis.
Tax-advantaged when rules are metRoth IRAs, Roth 401(k)s and 403(b)s, HSAs used for qualified medical expenses (other HSA withdrawals are taxable and may carry a 20% additional tax before age 65), and cash value life insurance that qualifies under Internal Revenue Code Section 7702 (which defines life insurance for federal tax purposes; it is not a separate retirement plan), accessed within policy and tax rules.
Questions 1 to 3 ask for a range or an exact amount for each bucket. Exact amounts are limited to $0–$100,000,000; values outside that range are adjusted to the nearest limit, and blank or non-numeric entries are left out. 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 adds the included exact amounts and representative range amounts, then 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 this example, 81% of the included balances are in accounts whose withdrawals are generally subject to ordinary income tax.
What this quiz does not include
The estimate uses only the balances or ranges you provide. It doesn't consider your 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 federal income taxes are generally paid. Taxed now: checking, savings, CDs and regular brokerage accounts, where interest and dividends are generally taxed each year and capital gains are generally taxed when you sell. Taxed later (tax-deferred): traditional (pre-tax) 401(k), 403(b), 457 and TSP accounts and traditional IRAs, where withdrawals are generally taxed as ordinary income, except for any recovery of after-tax basis. Tax-advantaged when rules are met: Roth accounts, HSAs and qualifying cash value life insurance, which can offer potentially income-tax-free access under specific federal rules.
Should I pick a range, enter an exact amount or choose Not sure?
Any of these works, and you can mix them. Each range counts as one representative amount (Under $10k = $5,000, $10k–$50k = $30,000, $50k–$250k = $150,000, Over $250k = $400,000). Enter exact amount uses your balance, from $0 to $100,000,000. Not sure leaves that bucket out, so the percentages describe only the balances included, and unknown balances could change the result. Statements or your plan's website usually show whether money is pre-tax, Roth or taxable.
How do Roth accounts fit?
Roth IRA and Roth 401(k) or 403(b) balances go in the tax-advantaged bucket. Qualified Roth distributions are generally exempt from federal income tax; qualification generally requires the applicable five-year period plus age 59½, death or disability, and Roth IRAs also have a limited first-home exception. Nonqualified distributions follow different rules. In a workplace plan, count pre-tax employer contributions in taxed later and any designated Roth employer contributions in the tax-advantaged bucket; your plan statement shows the split.
How do HSAs fit?
HSA distributions for eligible, unreimbursed qualified medical expenses incurred after the HSA was established are generally exempt from federal income tax. Other distributions are generally taxable and may incur an additional 20% tax. That additional tax generally ends at age 65 or upon disability or death, but nonmedical distributions are still taxable income.
How does cash value life insurance fit?
Internal Revenue Code Section 7702 defines which life insurance contracts qualify for federal tax purposes; it doesn't create a separate retirement plan. For a policy that isn't a modified endowment contract (MEC), withdrawals are generally income-tax-free up to the remaining tax basis, subject to exceptions, and policy loans generally aren't taxable while the policy stays in force. Surrender or lapse with outstanding loans can create taxable income, and loans carry interest and reduce available policy benefits. Enter the cash surrender value net of policy loans.
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.
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. The share buttons send only the page link and a general message, not your answers or results. 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 use the exact amounts you enter and representative amounts for any ranges you select. They describe only the balances included and do not estimate taxes, future withdrawals or financial outcomes, or reflect your 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. Surrender or lapse with outstanding loans can create taxable income. Modified endowment contract (MEC) loans and withdrawals generally receive income-first tax treatment, and taxable amounts may incur an additional 10% tax before age 59½, subject to exceptions. Life insurance is subject to underwriting and policy terms, premiums and charges, including possible surrender charges and loan interest. Any policy guarantees are based on the claims-paying ability of the issuing insurer. Availability and state tax treatment vary.
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.
