Estimate How Much of Your Retirement Withdrawal You Can Keep
Planning to take money from a traditional IRA, 401(k), Roth account or another retirement plan? Your tax bill may depend on how much you withdraw, your age, your other taxable income and whether an early-distribution exception applies.
This calculator estimates the additional federal income tax caused by your withdrawal, a possible 10% early-distribution tax, optional state tax, and how much cash may remain. It also compares tax withholding with the actual estimated tax cost so you do not mistake money withheld for the final tax you owe.
Calculate Your Retirement Withdrawal Tax
Use the example or enter your own amounts. This estimates the incremental federal tax from one withdrawal during tax year 2026.
The calculation runs in your browser. No bank account information, personal identity details or sign-in is required by this tool.
How Much Tax Will You Pay on a Retirement Withdrawal in 2026?
It depends on the type of retirement account, the taxable amount withdrawn, your other income and your age. Withdrawals from traditional pre-tax retirement accounts are generally included in ordinary income. Qualified Roth withdrawals generally are not.
If you take a taxable distribution before age 59½, you may also owe an additional 10% federal tax unless an exception applies. This is separate from federal income tax and any state income tax.
Federal marginal brackets
Ordinary federal tax brackets for 2026. Your withdrawal can cross more than one bracket.
Possible early tax
Additional tax generally applicable to taxable distributions before age 59½ without an exception.
Qualified Roth tax
Qualified Roth IRA or designated Roth plan distributions generally are excluded from federal income.
Why your marginal tax bracket is not your withdrawal tax rate
Suppose a withdrawal adds $20,000 to your income. If $8,000 of the additional income falls in the 12% bracket and $12,000 falls in the 22% bracket, the additional federal tax would be $3,600, before any adjustments, credits or special rules.
The calculator estimates federal income tax twice: once without the withdrawal and once with it. The difference is the estimated incremental federal income tax attributable to the distribution.
Examples of $10,000, $20,000 and $50,000 Retirement Withdrawals
The examples below assume a single 60-year-old taxpayer, with $50,000 of other federal AGI, the 2026 basic single standard deduction of $16,100, no early-distribution tax, no special deductions and no state income tax. The retirement withdrawal is fully taxable traditional IRA money.
| Gross withdrawal | Additional federal tax | Estimated after-tax cash |
|---|---|---|
| $10,000 | $1,200 | $8,800 |
| $20,000 | $3,060 | $16,940 |
| $50,000 | $9,660 | $40,340 |
Example: $20,000 withdrawal at age 50
Consider a traditional IRA withdrawal of $20,000 at age 50 with no qualifying exception. If the withdrawal causes $3,060 in additional federal income tax, the separate 10% early-distribution tax would add $2,000.
The combined estimated federal tax cost would be $5,060, leaving approximately $14,940 before state taxes, under those assumptions.
Example: The same withdrawal after age 59½
The ordinary income-tax calculation remains relevant, but the age-based 10% additional tax generally no longer applies. In the same simplified scenario, the $20,000 withdrawal would produce $3,060 in added federal income tax, leaving $16,940 before state taxes.
Example: $20,000 from a qualified Roth IRA
If the Roth distribution is fully qualified under IRS rules, it generally produces no additional federal income tax and no early-distribution tax. It may leave the full $20,000 available before any other transaction-specific costs.
Examples exclude changes to Social Security benefit taxation, credits, state taxes and other tax-return provisions. The interactive tool lets you adjust age, other income, withholding and state-tax assumptions.
Traditional IRA vs. 401(k) vs. Roth Withdrawal Taxes
| Account type | Typical income-tax treatment | Important early-withdrawal rule |
|---|---|---|
| Traditional IRA | Pre-tax amounts and earnings generally taxed as ordinary income | 10% additional tax may apply before 59½ unless an exception applies |
| Pre-tax 401(k) / 403(b) | Taxable distributions generally included in ordinary income | 10% additional tax may apply; certain plan exceptions differ from IRA rules |
| Qualified Roth IRA | Generally federal income-tax-free | Qualified distribution rules, including the five-year condition, must be satisfied |
| Qualified Roth 401(k) | Generally federal income-tax-free | Separate designated Roth qualification and five-year participation rules |
| Nonqualified Roth IRA | Contributions can generally be withdrawn tax-free; earnings may be taxable | Conversion recapture and earnings penalties may apply under separate rules |
| Traditional IRA with after-tax basis | May be partially taxable after applying the IRS basis calculation | Additional tax is generally based on taxable portions, subject to exceptions |
Traditional IRA withdrawal
Traditional IRA contributions and investment earnings can grow tax-deferred. When the account contains only deductible or other pre-tax money, withdrawals are generally fully taxable as ordinary income. If you made nondeductible contributions, Form 8606 may be needed to determine the taxable and nontaxable parts.
401(k) or 403(b) withdrawal
Pre-tax workplace retirement withdrawals are generally taxable. Unlike an IRA, the workplace plan may restrict when money can be taken. A hardship distribution is not automatically exempt from ordinary tax or the 10% early-distribution tax.
Roth IRA withdrawal
Regular Roth IRA contributions generally come out before conversions and earnings under IRS ordering rules. A qualified Roth IRA distribution generally requires the applicable five-year period and an eligible condition, such as reaching age 59½. Distributions of converted amounts can have separate five-year additional-tax rules.
Roth 401(k) withdrawal
Qualified designated Roth distributions are generally income-tax-free. Nonqualified distributions may be allocated proportionally between earnings and contributions, unlike the usual Roth IRA contribution-first ordering rule.
2026 Federal Income Tax Brackets for Retirement Withdrawals
Taxable withdrawals generally add to ordinary income for the year. Federal brackets apply to taxable income after applicable deductions, not directly to gross distributions.
2026 basic standard deductions
| Filing status | Basic deduction |
|---|---|
| Single | $16,100 |
| Married filing jointly | $32,200 |
| Married filing separately | $16,100 |
| Head of household | $24,150 |
2026 single-filer federal tax brackets
| Marginal rate | Taxable income band |
|---|---|
| 10% | $0–$12,400 |
| 12% | Over $12,400–$50,400 |
| 22% | Over $50,400–$105,700 |
| 24% | Over $105,700–$201,775 |
| 32% | Over $201,775–$256,225 |
| 35% | Over $256,225–$640,600 |
| 37% | Over $640,600 |
The calculator also uses published thresholds for married filing jointly, married filing separately and head of household. Because deductions and benefits can change as AGI rises, the incremental tax cost of a withdrawal can differ from a simple marginal-bracket estimate.
How the 10% Early Retirement Withdrawal Tax Works Before Age 59½
For many traditional IRAs and qualified workplace plans, a taxable withdrawal before age 59½ is subject to a 10% additional federal tax unless a specific exception applies. That extra tax is generally calculated on the amount included in gross income.
Some important IRS exceptions
| Exception or circumstance | Traditional IRA | Qualified workplace plan |
|---|---|---|
| Distributions after reaching age 59½ | Generally exempt from additional tax | Generally exempt from additional tax |
| Qualifying disability | May qualify | May qualify |
| Certain substantially equal periodic payments (72(t)) | May qualify | May qualify, with additional plan conditions |
| Qualified higher education expenses | May qualify | Generally not the corresponding plan exception |
| Qualified first-home purchase, up to applicable lifetime limit | May qualify | Generally not the corresponding plan exception |
| Separation from service in or after year turning 55 | Not this exception | May qualify |
| Qualified domestic relations order | Not this plan-specific exception | May qualify for alternate payee |
| Certain qualifying emergency, disaster or domestic-abuse distributions | May qualify under specified rules | May qualify under specified rules |
Does financial hardship remove the penalty?
Not automatically. A 401(k) hardship distribution can still be subject to ordinary income tax and the 10% additional tax. An IRA owner generally can request a distribution without establishing hardship, but taking the money for a financial emergency does not automatically eliminate the additional tax.
What is the Rule of 55?
Some distributions from qualifying employer plans can avoid the 10% additional tax if you separate from service during or after the calendar year in which you turn 55. The exception is not generally available for ordinary IRA distributions. Certain public safety employees and other qualifying workers may have different applicable rules.
What about SIMPLE IRAs?
A SIMPLE IRA may be subject to an increased 25% early-distribution tax during the first two years of participation, unless an exception applies. The main calculator models the ordinary 10% additional tax only and should not be used to calculate this special 25% circumstance.
See the IRS’s official table of early-distribution exceptions.
Do Retirement Withdrawals Get a Special Tax Deduction After Age 65?
For 2026, some taxpayers age 65 or older may benefit from two different federal deduction provisions: an additional standard-deduction amount and the temporary enhanced senior deduction.
Additional standard deduction for many unmarried seniors
For eligible single or head-of-household taxpayers age 65 or older, the 2026 age-based addition to the basic standard deduction is $2,050. Different amounts apply to married taxpayers.
Enhanced senior deduction
Eligible taxpayers age 65 or older may claim up to an additional $6,000 for 2026, subject to filing, SSN, income and other requirements. A qualifying joint return may allow up to $12,000 if both spouses qualify.
Enhanced senior deduction income phaseout
For the 2025–2028 tax years, the enhanced senior deduction begins phasing down when modified adjusted gross income exceeds $75,000 for single or head-of-household filers, or $150,000 for married filing jointly.
The calculator models a 6% reduction above the applicable threshold for each eligible individual. It assumes entered other AGI plus the taxable withdrawal reasonably approximates the relevant modified AGI; special income exclusions and modifications may change the actual result.
Why a retirement withdrawal can affect this deduction
A taxable traditional IRA withdrawal raises AGI. If it causes your modified AGI to pass the senior-deduction phaseout threshold, the loss of part of that deduction can increase the incremental income-tax cost of the withdrawal.
Is 10% or 20% Withholding Enough for a Retirement Withdrawal?
Retirement plan payers may withhold federal income tax when money is distributed. That withholding is credited toward your tax bill; it is not a second tax in addition to the ordinary tax and applicable early-distribution tax.
| Distribution situation | Typical federal withholding | Important detail |
|---|---|---|
| Nonperiodic traditional IRA withdrawal | 10% default | Eligible U.S. payees may elect a different rate or elect out, subject to applicable rules |
| Eligible rollover distribution from a qualified workplace plan paid to you | Generally mandatory 20% | You usually cannot elect out of this mandatory withholding |
| Direct rollover to another eligible retirement account | Generally no withholding | A qualifying direct rollover generally defers current income taxation |
| RMD or other nonperiodic distribution not eligible for rollover | Often 10% default under nonperiodic rules | Rules can differ by payment type and permitted elections |
| Periodic pension or annuity payments | Form W-4P calculation | Different from simply using a 10% or 20% flat rate |
Example: $30,000 withdrawal with 10% withheld
Your custodian withholds $3,000 and sends you $27,000. If your total additional tax attributable to the withdrawal is estimated at $6,000, the $3,000 withholding covers only half the estimated amount. You may need another $3,000 from available funds or other payments.
If the actual tax attributable to the distribution is less than withholding, overwithholding may increase your tax refund or reduce taxes owed on the return, depending on your whole-year tax situation.
How do Forms W-4R and W-4P differ?
Form W-4R generally applies to nonperiodic distributions and eligible rollover distributions. Form W-4P generally applies to periodic pension or annuity payments.
Visit IRS Form W-4R or IRS Form W-4P as applicable.
Estimate Your 2026 Required Minimum Distribution (RMD)
Required minimum distributions are minimum amounts that must generally be withdrawn from certain retirement accounts after reaching the applicable starting age. An RMD from a traditional pre-tax IRA is generally taxable, but taking an RMD is not itself subject to the 10% early-distribution tax.
For people born in 1951–1959, the applicable starting age is generally 73. Those born in 1960 or later generally begin at 75. Roth IRAs and designated Roth accounts do not require lifetime RMDs for the original account owner.
Simple 2026 RMD Estimator
Estimated Annual RMD
Using IRS Uniform Lifetime Table divisor 25.5 for age 74.
2026 RMD calculation formula
Estimated RMD = account balance on December 31 of the previous year ÷ applicable IRS life-expectancy divisor.
| Age reached in 2026 | Uniform Lifetime Table divisor |
|---|---|
| 73 | 26.5 |
| 74 | 25.5 |
| 75 | 24.6 |
| 76 | 23.7 |
| 77 | 22.9 |
| 78 | 22.0 |
| 79 | 21.1 |
| 80 | 20.2 |
| 85 | 16.0 |
| 90 | 12.2 |
Missing an RMD can lead to an excise tax of up to 25% of the shortfall, potentially reduced to 10% if timely corrected, subject to applicable relief rules. Do not use an RMD for a rollover: required minimum distributions generally are not eligible rollover distributions.
How to Check Retirement Withdrawal Taxes Using IRS Forms
- Identify your account and distribution type. Check whether the funds came from a traditional IRA, Roth IRA, qualified workplace plan or a mixture of pre-tax and after-tax amounts.
- Obtain Form 1099-R from your retirement provider. Review the gross distribution, reported taxable amount, federal tax withheld and distribution codes. Use IRS Form 1099-R guidance to understand what is reported.
- Determine the taxable portion. For a traditional IRA containing nondeductible contributions, review Form 8606 and Publication 590-B. For Roth distributions, confirm qualified status, ordering rules and any conversion-specific requirements.
- Compare the distribution with your total 2026 income. Combine taxable retirement distributions with other applicable federal income, then review the federal tax brackets and available deductions.
- Check early-distribution exceptions. If you were under age 59½, open the IRS exceptions chart. Verify whether an exception applies to your specific plan and distribution.
- Review Form 5329 when necessary. Use IRS Form 5329 when an additional tax must be reported or when you need to claim an exception not properly reflected by the distribution code.
- Check withholding already paid. Review Form 1099-R for federal withholding and include other relevant withholding or estimated payments when planning your annual tax position.
- Review your annual return requirements. Use IRS Form 1040 guidance, including Schedules 1-A and 2 where relevant, to understand how deductions and additional taxes are reported.
Do States Tax IRA and 401(k) Withdrawals?
State income-tax rules vary. Some states do not have a broad individual income tax, while others tax certain retirement distributions but provide age-based exclusions, pension exemptions or credits.
States without a broad individual income tax
States such as Florida, Texas, Tennessee, Nevada, Wyoming, South Dakota, Alaska and New Hampshire do not impose a broad individual income tax. Washington generally does not tax ordinary retirement distributions through a personal wage-income tax, although its distinct tax rules should be reviewed for unusual income types.
States with retirement income exclusions
Some states provide favorable treatment for qualifying pensions, Social Security or retirement account withdrawals. Exclusions can depend on age, account type, income, residency and other conditions.
How to enter an estimated state tax
- Identify your 2026 state of residence. Consider part-year residence or nonresident income issues if you moved.
- Visit your state’s official revenue department. Search its retirement income, pension and IRA distribution rules.
- Determine how much of the withdrawal is state taxable. Do not automatically assume it matches federal taxable income.
- Estimate the additional state/local tax. Convert the estimated additional tax to a percentage of the federally taxable withdrawal for this simplified input.
- Compare results. Use the federal calculator with and without the estimated state-tax percentage to understand the effect.
Example: If a $20,000 taxable withdrawal would cause an additional $800 in state/local income tax, an illustrative incremental rate would be 4%. Enter 4% in the state-tax field.
Three Retirement Withdrawal Tax Effects People Often Miss
Social Security benefit taxation
Traditional IRA or 401(k) income can increase combined income and cause more Social Security benefits to become federally taxable, subject to the usual limits. The tool does not automatically recompute this interaction.
Medicare IRMAA
A larger taxable retirement withdrawal can raise modified AGI used for income-related Medicare Part B and Part D premium adjustments in a later year. This is separate from federal income tax.
Deduction and credit phaseouts
Additional income can reduce eligibility for some deductions and credits. The 2026 enhanced senior deduction is one example that the calculator approximates, but other tax benefits may be affected.
Should you take a large withdrawal all at once?
A lump-sum traditional retirement withdrawal may push part of your ordinary taxable income into a higher bracket. Multiple smaller withdrawals across tax years can sometimes produce a different combined tax result, but future rates, required distributions, market conditions, Social Security and healthcare consequences all matter.
What about qualified charitable distributions?
Eligible IRA owners age 70½ or older may be able to make a qualified charitable distribution directly from an IRA to an eligible charity. When all requirements are met, the qualified amount is generally excluded from income and may count toward an RMD. A check first paid to the IRA owner and then donated is not treated the same way.
For detailed retirement IRA distribution rules, see IRS Publication 590-B.
Why Your Actual Retirement Tax May Differ From the Estimate
| Problem | Possible reason | What to check |
|---|---|---|
| Tax is higher than the withholding amount | Withholding is not final tax | Compare tax liability after withdrawal with withholding and other payments |
| Roth withdrawal appears taxable | Distribution is not qualified, or contains earnings or conversions | Review contribution and conversion history plus five-year rules |
| Additional tax appears before age 59½ | 10% early-distribution tax applies | Review the IRS exception chart and Form 5329 |
| Taxable IRA distribution is less than the gross amount | Nondeductible traditional IRA contributions or other basis | Review Form 8606 and the IRA aggregation rules |
| Social Security tax calculation differs | More Social Security benefits became taxable after withdrawal | Recalculate taxable benefits using IRS Publication 915 |
| State tax is missing | State/local tax field was left at zero | Review official state retirement income rules |
| Senior deduction is too high | MAGI or eligibility differs from the model | Review Schedule 1-A and the actual modified-AGI worksheet |
| RMD estimate differs from custodian | Wrong prior-year balance, life table or account treatment | Confirm account information and correct IRS table |
Retirement Withdrawal Tax Calculator 2026 — Frequently Asked Questions
1. How much tax will I pay on a $20,000 retirement withdrawal in 2026?
The tax depends on your other income, filing status, account type, age and state. A fully taxable $20,000 traditional IRA withdrawal may add income across multiple brackets. The calculator compares your estimated federal tax before and after the withdrawal rather than assigning one flat rate.
2. Are traditional IRA withdrawals taxed as ordinary income?
Yes, traditional IRA withdrawals are generally taxed as ordinary income to the extent they represent pre-tax contributions and earnings. Nondeductible contribution basis may make part of a distribution nontaxable, requiring the applicable IRS calculation.
3. What is the retirement early-withdrawal penalty before age 59½?
A 10% additional federal tax generally applies to taxable IRA and certain workplace retirement plan distributions before age 59½ unless an applicable IRS exception applies. It is separate from ordinary income tax. Some accounts and circumstances have different rules.
4. Do you pay the 10% early-withdrawal tax after age 59½?
Generally no. Reaching age 59½ ordinarily removes the age-based 10% additional early-distribution tax for traditional IRA and qualifying retirement plan distributions, but taxable amounts may still be subject to ordinary income tax.
5. Are qualified Roth IRA withdrawals tax-free?
Qualified Roth IRA withdrawals generally are federal income-tax-free. The distribution must meet applicable IRS requirements, including the Roth five-year rule and a qualifying age or other condition. Nonqualified withdrawals may have different tax and additional-tax treatment.
6. Why is 20% withheld from my 401(k) withdrawal?
Many taxable eligible rollover distributions from employer retirement plans that are paid directly to the participant are subject to mandatory 20% federal withholding. This is a tax prepayment, not necessarily the final tax. A qualifying direct rollover can generally avoid current withholding.
7. Does my state charge income tax on IRA or 401(k) withdrawals?
It depends on the state, account type, age and applicable exclusions. Some states have no broad individual income tax, while others tax retirement distributions but may offer pension or retirement income exemptions. This calculator uses an optional estimated state/local tax percentage.
8. When do required minimum distributions start in 2026?
The applicable RMD starting age is generally 73 for people born in 1951 through 1959 and 75 for people born in 1960 or later. Special plan rules, timing and inherited-account rules may apply. Roth IRAs and designated Roth accounts have no RMDs during the original owner’s lifetime.
9. Can an IRA withdrawal make more of my Social Security taxable?
Yes. Additional taxable retirement income can increase combined income used to determine the federal taxable portion of Social Security benefits. The calculator does not automatically recalculate Social Security taxation, so people receiving benefits should review IRS Publication 915.
10. Is a retirement withdrawal tax deduction available at age 65 in 2026?
Eligible taxpayers age 65 or older may qualify for a higher standard deduction and a separate enhanced deduction of up to $6,000 per person for 2026, subject to modified-income phaseouts and other requirements. Qualifying joint filers may receive up to $12,000 if both spouses are eligible.
Official IRS Sources for 2026 Retirement Withdrawal Taxes
- IRS 2026 Federal Tax Inflation Adjustments — federal income-tax brackets and basic standard deductions.
- IRS Publication 590-B — traditional and Roth IRA distributions, taxable amounts, ordering rules and RMDs.
- IRS Topic 557 — additional tax on early IRA distributions.
- IRS Topic 558 — early-distribution additional tax and exceptions for workplace plans.
- IRS Retirement Distribution Exception Table — account-specific early-tax exceptions.
- IRS Roth Account FAQs — qualified Roth workplace account distributions.
- IRS Retirement Rollover Guide — withholding and direct rollover rules.
- IRS RMD FAQs — starting ages, required distributions and penalties.
- IRS Uniform Lifetime Table — RMD distribution-period divisors.
- IRS Enhanced Senior Deduction Guidance — 2026 age-65 deduction eligibility and phaseout.
- IRS Form 1099-R — distribution reporting.
- IRS Form 5329 — early-distribution and other additional taxes.
- IRS Form W-4R — nonperiodic distribution withholding elections.
- IRS Publication 915 — federal taxation of Social Security benefits.
Research basis: 2026 federal rules available as of October 2026. The calculator estimates tax year 2026 amounts, generally reported on returns filed in 2027. It is not a substitute for official IRS forms or individualized tax advice.