403(b) Withdrawal Calculator

For public-school, healthcare and nonprofit employees. A 403(b) is taxed like a 401(k) in retirement, and this calculator models the distributions — including the tax gross-up — so you can plan alongside a pension or Social Security.

Why 403(b) planning is different

Most 403(b) owners also have a defined-benefit pension — a teacher's pension, a hospital system plan, or a state retirement system. That changes the math: the 403(b) does not have to fund your whole retirement, only the gap between pension plus Social Security and your actual spending. Enter that gap as the monthly withdrawal, not your total expenses, or the result will look far worse than reality.

Two cautions specific to 403(b)s. First, many are invested in annuity products with fees of 1.5–2.5% a year; that drag is equivalent to lowering your return, so use 3.5–4% rather than 5% if you have not checked the expense ratio. Second, some public-sector employees are affected by the Windfall Elimination Provision and Government Pension Offset, which reduce Social Security — though the Social Security Fairness Act repealed both for benefits payable from January 2024.

How the calculator works

Each month the balance earns one month of return, then the withdrawal is taken out. Every 12 months the withdrawal is increased by the inflation rate so your spending power stays level. If you enter a tax rate, each withdrawal is grossed up so the after-tax amount you keep matches the number you typed. The calculator stops when the balance hits zero, or after 100 years if it never does.

The "to last 20 / 25 / 30 years" figures are solved by bisection: the largest starting withdrawal that still survives that horizon under the same return and inflation assumptions.

403(b) withdrawal rules

• Age 59½ for penalty-free distributions, with the same Rule of 55 as 401(k)s if you separate from service in or after the year you turn 55.
• 15-year service catch-up. Long-tenured employees of qualifying employers could contribute extra while working; this only affects the balance you bring to retirement.
• RMDs at age 73, with a special rule that pre-1987 contributions can be deferred to age 75.
• Rollovers to an IRA are allowed and usually cut fees — the single most effective way to make a high-cost 403(b) last longer.

Choosing realistic inputs

• Annual return. 4–5% is a conservative planning number for a balanced portfolio; 6–7% is closer to long-run history for 60/40; cash and CDs are 3–5% today but fall when rates fall.
• Inflation. The Federal Reserve targets 2%; the 30-year U.S. average is about 2.5%. Healthcare inflation runs higher, so retirees with large medical costs should test 3–3.5%.
• Withdrawal. Use what you actually spend, minus guaranteed income (Social Security, pension, annuity). That net gap is what savings must cover.

SavingsLast calculators are educational estimates. They assume a constant average return and steady inflation; real markets are volatile and sequence-of-returns risk can shorten how long money lasts. Nothing here is financial, investment, tax, or legal advice. Consult a qualified professional before making decisions.