Enter the total amount of after-tax contributions (basis) you've made to your Roth IRA. For Traditional IRAs, this is usually 0 unless you made non-deductible contributions.
This helps estimate your marginal tax bracket.
10%
12%
22%
24%
32%
35%
37%
Estimated Tax Impact:
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Enter your details above to see the estimated tax.
Understanding IRA Withdrawal Taxes
Withdrawing funds from an Individual Retirement Arrangement (IRA) can have significant tax implications, depending on the type of IRA and your personal financial situation. This calculator helps you estimate the federal income tax you might owe on a withdrawal from either a Traditional IRA or a Roth IRA.
Traditional IRA Withdrawals
Withdrawals from a Traditional IRA are generally taxed as ordinary income in the year they are taken. This is because contributions to a Traditional IRA are typically made with pre-tax dollars, meaning you received a tax deduction when you contributed. The IRS taxes this money when it is distributed.
Calculation:
If the withdrawal is from deductible contributions and earnings, the entire amount withdrawn is taxable income.
If you made non-deductible (after-tax) contributions, that portion of your withdrawal is not taxed again. Your "taxable basis" is the total amount of non-deductible contributions you've made over time.
The tax owed is calculated by multiplying the taxable portion of the withdrawal by your marginal federal income tax rate.
You have made $5,000 in non-deductible contributions (taxable basis).
Your marginal tax rate is 24% (0.24).
Taxable Portion = $15,000 – $5,000 = $10,000
Estimated Tax = $10,000 * 0.24 = $2,400
Roth IRA Withdrawals
Roth IRA withdrawals are generally tax-free, provided certain conditions are met. Contributions to a Roth IRA are made with after-tax dollars, so you don't get a tax deduction when you contribute. The key benefit is that qualified withdrawals of both contributions and earnings are tax-free.
Qualified Withdrawals: To be qualified, a Roth IRA distribution must meet two criteria:
It must be made after the 5-year period beginning with the first tax year for which a contribution was made to any Roth IRA.
It must be made on or after the date you reach age 59½, die, become disabled, or for a qualified first-time home purchase (up to a $10,000 lifetime limit).
Non-Qualified Withdrawals: If a Roth IRA withdrawal is not qualified, the earnings portion of the withdrawal is subject to ordinary income tax and potentially a 10% early withdrawal penalty if you are under age 59½ (unless an exception applies).
Calculation for this calculator (focusing on the taxable portion):
The calculator assumes that Roth IRA withdrawals are qualified unless the withdrawal amount exceeds your total contributions (basis).
If the withdrawal amount is less than or equal to your total tax basis, it's considered a return of your contributions and is tax-free.
If the withdrawal amount exceeds your tax basis, the amount exceeding the basis is considered earnings and is taxable.
Your total contributions (taxable basis) are $12,000.
Your marginal tax rate is 22% (0.22).
Taxable Earnings = $20,000 – $12,000 = $8,000
Estimated Tax = $8,000 * 0.22 = $1,760
Important Considerations
Early Withdrawal Penalty: This calculator estimates federal income tax. Withdrawals before age 59½ may also be subject to a 10% early withdrawal penalty on the taxable portion, unless an exception applies (e.g., disability, certain medical expenses, substantially equal periodic payments). Consult IRS Publication 590-B for penalty exceptions.
State Taxes: State income taxes may also apply to IRA withdrawals. This calculator does not include state tax calculations.
Income Brackets: The tax rate selected impacts the tax calculation. Using your estimated annual income helps approximate your marginal tax bracket, but your actual tax liability can be influenced by many factors, including deductions, credits, and other income sources.
Disclaimer: This calculator provides an estimate for educational purposes only and does not constitute financial or tax advice. Consult with a qualified tax professional for personalized advice regarding your specific situation.
function calculateIRATaxes() {
var withdrawalAmount = parseFloat(document.getElementById("withdrawalAmount").value);
var iraType = document.getElementById("iraType").value;
var taxableBasis = 0;
var annualIncome = parseFloat(document.getElementById("annualIncome").value);
var taxRate = parseFloat(document.getElementById("taxBracket").value);
var estimatedTax = 0;
var taxablePortion = 0;
var explanation = "";
// Validate inputs
if (isNaN(withdrawalAmount) || withdrawalAmount <= 0) {
document.getElementById("resultExplanation").innerText = "Please enter a valid withdrawal amount.";
document.getElementById("estimatedTax").innerText = "–";
return;
}
if (isNaN(annualIncome) || annualIncome < 0) {
document.getElementById("resultExplanation").innerText = "Please enter a valid annual income.";
document.getElementById("estimatedTax").innerText = "–";
return;
}
if (iraType === "traditional") {
taxableBasis = parseFloat(document.getElementById("taxableBasis").value);
if (isNaN(taxableBasis) || taxableBasis taxableBasis) {
taxablePortion = withdrawalAmount – taxableBasis;
estimatedTax = taxablePortion * taxRate;
explanation = "This amount is taxed as ordinary income (assuming it exceeds your non-deductible basis).";
} else {
taxablePortion = 0;
estimatedTax = 0;
explanation = "This withdrawal is considered a return of your non-deductible contributions (basis) and is not taxed.";
}
} else { // Roth IRA
taxableBasis = parseFloat(document.getElementById("taxableBasis").value);
if (isNaN(taxableBasis) || taxableBasis taxableBasis) {
taxablePortion = withdrawalAmount – taxableBasis;
estimatedTax = taxablePortion * taxRate;
explanation = "This portion represents earnings, which are taxed because the withdrawal may not be qualified.";
} else {
taxablePortion = 0;
estimatedTax = 0;
explanation = "This withdrawal is a return of your contributions (basis) and is tax-free.";
}
}
// Format currency and display result
var formattedTax = estimatedTax.toLocaleString(undefined, { style: 'currency', currency: 'USD' });
document.getElementById("estimatedTax").innerText = formattedTax;
document.getElementById("resultExplanation").innerText = explanation;
}
// Toggle visibility of taxable basis input based on IRA type
var iraTypeSelect = document.getElementById("iraType");
var taxableBasisSection = document.getElementById("taxableBasisSection");
var taxableBasisInput = document.getElementById("taxableBasis");
iraTypeSelect.onchange = function() {
if (iraTypeSelect.value === "traditional") {
taxableBasisSection.style.display = "block";
taxableBasisInput.setAttribute('placeholder', 'e.g., 5000 (non-deductible contributions)');
} else { // Roth IRA
taxableBasisSection.style.display = "block";
taxableBasisInput.setAttribute('placeholder', 'e.g., 25000 (total contributions)');
}
};
// Initialize visibility on load
iraTypeSelect.onchange(); // Trigger the change event once on load