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.

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 2012 Caution: Do not use these tax rate schedules to figure 2011 taxes. Use only to figure 2012 estimates. Tax rate Married filing jointly or qualified widow(er) Single Head of household Married filing separately 10% $0 - 17,400 $0 - 8,700 $0 - $12,400 $0 - 8,700 15% $17,400 - 70,700 $8,700 - 35,350 $12,400 - 47,350 $8,700 - 35,350 25% $70,700 - 142,700 $35,350 - 85,650 $47,350 - 122,300 $35,350 - 71,350 28% $142,700 - 217,450 $85,650 - 178,650 $122,300 - 198,050 $71,350 - 108,725 33% $217,450 - 388,350 $178,650 - 388,350 $198,050 - 388,350 $108,725 - 194,175 35% over $388,350 over $388,350 over $388,350 over $194,175 Source: Revenue Procedure 2011-52 http://www.irs.gov State income tax rate The current state marginal tax rate you expect to pay on any additional income (or taxable distributions).