Retirement Plan Withdrawal

Withdrawing money from a qualified retirement plan, such as a Traditional IRA, 401(k) or 403(b) plan, among others, can create a sizable tax obligation. If you are under 59 ½ you may also be subject to a 10% early withdrawal penalty. Use this calculator to see what your net withdrawal would be after taxes and penalties are taken into account.

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Definitions

Amount to withdraw
The amount you wish to withdraw from your qualified retirement plan. Withdrawals are subject to income tax and prior to age 59 1/2 may also be subject to a 10% additional tax penalty. There are some exceptions to the penalty. Consult a tax advisor for more information. For this calculation we assume that all contributions to the retirement account were made on a pre-tax or tax deductible basis. If you made contributions that were subject to income taxes, you may not owe taxes on the entire withdrawal. You should consult your tax or legal advisor concerning your particular situation.

Current age
Your current age.

Federal income tax rate
Consult the table below to determine your federal tax bracket. If you are unsure, the calculator will choose 25%. Please note that state taxes are entered in a separate entry field.

Filing Status and Income Tax Rates 2009

Caution: Do not use these tax rate schedules to figure 2008 taxes. Use only to figure 2009 estimates.

Tax rateMarried filing jointly
or Qualified Widow(er)		SingleHead of householdMarried filing separately
10% $0 - 16,700 $0 - 8,350 $0 - $11,950 $0 - 8,350
15% $16,701- 67,900 $8,351- 33,950 $11,951- 45,500 $8,351- 33,950
25% $67,901- 137,050 $33,951- 82,250 $45,501- 117,450 $33,951- 68,525
28% $137,051- 208,850 $82,251- 171,550 $117,451- 190,200 $68,526- 104,425
33% $208,851- 372,950 $171,551- 372,950 $190,200- 372,950 $104,425- 186,475
35% over $372,950 over $372,950 over $372,950 over $186,475
Source: http://www.irs.gov/pub/irs-drop/rp-08-66.pdf
State income tax rate
The current State marginal tax rate you expect to pay on any additional income (or taxable distributions).

Information and interactive calculators are made available to you as self-help tools for your independent use and are not intended to provide investment advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues. We do not provide investment OR tax advice, please consult a tax advisor for more information.