Created
January 20, 2024 01:31
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| def compute_tax(income): | |
| tax = 0 | |
| def tax_income(rate, top_bound): | |
| nonlocal income, tax | |
| removed = income - max(income - top_bound, 0) | |
| # print(removed, '\ttaxed at', rate, '\tfor', removed * rate) | |
| tax += removed * rate | |
| income -= removed | |
| tax_income(0.1, 10_275) | |
| tax_income(0.12, 41_775) | |
| tax_income(0.22, 89_075) | |
| tax_income(0.24, 170_050) | |
| tax_income(0.32, 215_950) | |
| tax_income(0.35, 539_001) | |
| tax_income(0.37, income) | |
| return tax | |
| annual_income = 140_000 | |
| annual_401k = 23_000 | |
| employer_match = 0.5 | |
| employer_limit = 0.04 | |
| annual_401k_growth = 0.10 | |
| projected_years = 10 | |
| retirment_withdrawl = 50_000 | |
| employer_contribution = min(annual_401k * employer_match, annual_income * employer_limit) | |
| annual_income -= annual_401k | |
| # PRE TAX Computation | |
| total_income = annual_income * projected_years | |
| total_tax = compute_tax(annual_income - annual_401k) * projected_years | |
| retirment_savings = 0 | |
| annual_contributions = employer_contribution + annual_401k | |
| for year in range(projected_years): | |
| retirment_savings *= (1 + annual_401k_growth) | |
| retirment_savings += annual_contributions | |
| retirement_tax = compute_tax(retirment_withdrawl) | |
| pretax_networth = (total_income - total_tax) + (retirment_savings) | |
| print("Pretax Withdrawl Tax / yr: ", int(retirement_tax)) | |
| print("PreTax Networth: ", int(pretax_networth)) | |
| # Roth 401k Computation | |
| total_income = annual_income * projected_years | |
| total_tax = compute_tax(annual_income) * projected_years | |
| retirment_savings = 0 | |
| annual_contributions = employer_contribution + annual_401k | |
| for year in range(projected_years): | |
| retirment_savings *= (1 + annual_401k_growth) | |
| retirment_savings += annual_contributions | |
| roth_networth = (total_income - total_tax) + (retirment_savings) | |
| print("Roth Networth: ", int(roth_networth)) |
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