Single
Married Filing Jointly
Head of Household
Married Filing Separately
Your estimated tax liability will appear here.
Understanding IRA Withdrawal Taxes
Withdrawing funds from an Individual Retirement Arrangement (IRA) can have significant tax implications. The tax treatment of your withdrawal depends primarily on the type of IRA you have (Traditional or Roth) and your individual tax situation. This calculator provides an estimate of the taxes you might owe on a withdrawal from your IRA.
Traditional IRA Withdrawals
Contributions to a Traditional IRA are often tax-deductible in the year they are made, meaning your current taxable income was reduced. As a result, both your contributions and any earnings within the account are typically taxed as ordinary income when you withdraw them in retirement. The amount subject to tax is the portion of your withdrawal that has not been taxed previously. If you made non-deductible contributions, that portion of your withdrawal is not taxed again. This calculator assumes all contributions were tax-deductible for simplicity.
The tax rate applied to Traditional IRA withdrawals is your marginal income tax rate at the time of withdrawal. Your marginal tax rate is determined by your total taxable income and your filing status for that tax year. Higher income generally means a higher marginal tax rate.
Roth IRA Withdrawals
Roth IRA contributions are made with after-tax dollars, meaning you don't get a tax deduction when you contribute. The significant advantage of a Roth IRA is that qualified withdrawals of both contributions and earnings are tax-free. A qualified withdrawal typically means the account has been open for at least five years, and you are at least 59½ years old, disabled, or using the funds for a qualified first-time home purchase (up to $10,000).
This calculator assumes that a withdrawal from a Roth IRA is qualified and therefore tax-free. If your withdrawal is not qualified, you may owe taxes on the earnings portion of the withdrawal, and potentially a 10% early withdrawal penalty if you are under age 59½, unless an exception applies.
Early Withdrawal Penalties
In addition to income taxes, withdrawals from IRAs (both Traditional and Roth) made before age 59½ may be subject to a 10% early withdrawal penalty. This penalty applies to the taxable portion of the withdrawal. Certain exceptions exist, such as for disability, unreimbursed medical expenses, or a substantial equal periodic payment plan (SEPP). This calculator does NOT include the 10% early withdrawal penalty.
How the Calculator Works
This calculator estimates the income tax due on your IRA withdrawal.
Traditional IRA: The entire withdrawal amount is treated as taxable income. The calculator then estimates your marginal tax bracket based on your provided taxable income (before withdrawal) and filing status, and calculates the tax at that rate.
Roth IRA: Assuming a qualified withdrawal, the tax is $0.
Disclaimer: This calculator is for informational purposes only and does not constitute tax advice. Tax laws are complex and subject to change. Consult with a qualified tax professional or financial advisor for advice tailored to your specific situation.
function calculateIRATaxes() {
var withdrawalAmount = parseFloat(document.getElementById("withdrawalAmount").value);
var iraType = document.getElementById("iraType").value;
var taxableIncome = parseFloat(document.getElementById("taxableIncome").value);
var filingStatus = document.getElementById("filingStatus").value;
var taxResultDiv = document.getElementById("result");
// Clear previous results and error messages
taxResultDiv.innerHTML = "Your estimated tax liability will appear here.";
taxResultDiv.style.backgroundColor = "#d4edda"; // Reset to default success green
taxResultDiv.style.color = "#155724"; // Reset to default success text
// Input validation
if (isNaN(withdrawalAmount) || withdrawalAmount < 0) {
taxResultDiv.innerHTML = "Please enter a valid withdrawal amount.";
taxResultDiv.style.backgroundColor = "#f8d7da"; // Error red
taxResultDiv.style.color = "#721c24";
return;
}
if (isNaN(taxableIncome) || taxableIncome < 0) {
taxResultDiv.innerHTML = "Please enter a valid taxable income.";
taxResultDiv.style.backgroundColor = "#f8d7da"; // Error red
taxResultDiv.style.color = "#721c24";
return;
}
var taxRate = 0;
var estimatedTax = 0;
if (iraType === "traditional") {
// Estimate marginal tax bracket based on taxable income + withdrawal
var totalIncomeForBracket = taxableIncome + withdrawalAmount;
// Using 2023 tax brackets for estimation (these can change annually)
// Source: IRS Publication 17
if (filingStatus === "single") {
if (totalIncomeForBracket <= 11000) taxRate = 0.10;
else if (totalIncomeForBracket <= 44725) taxRate = 0.12;
else if (totalIncomeForBracket <= 95375) taxRate = 0.22;
else if (totalIncomeForBracket <= 182100) taxRate = 0.24;
else if (totalIncomeForBracket <= 231250) taxRate = 0.32;
else if (totalIncomeForBracket <= 578125) taxRate = 0.35;
else taxRate = 0.37;
} else if (filingStatus === "married_filing_jointly") {
if (totalIncomeForBracket <= 22000) taxRate = 0.10;
else if (totalIncomeForBracket <= 89450) taxRate = 0.12;
else if (totalIncomeForBracket <= 190750) taxRate = 0.22;
else if (totalIncomeForBracket <= 364200) taxRate = 0.24;
else if (totalIncomeForBracket <= 462500) taxRate = 0.32;
else if (totalIncomeForBracket <= 693750) taxRate = 0.35;
else taxRate = 0.37;
} else if (filingStatus === "head_of_household") {
if (totalIncomeForBracket <= 15700) taxRate = 0.10;
else if (totalIncomeForBracket <= 59850) taxRate = 0.12;
else if (totalIncomeForBracket <= 95350) taxRate = 0.22;
else if (totalIncomeForBracket <= 182100) taxRate = 0.24;
else if (totalIncomeForBracket <= 231250) taxRate = 0.32;
else if (totalIncomeForBracket <= 578125) taxRate = 0.35;
else taxRate = 0.37;
} else if (filingStatus === "married_filing_separately") {
if (totalIncomeForBracket <= 11000) taxRate = 0.10;
else if (totalIncomeForBracket <= 44725) taxRate = 0.12;
else if (totalIncomeForBracket <= 95375) taxRate = 0.22;
else if (totalIncomeForBracket <= 182100) taxRate = 0.24;
else if (totalIncomeForBracket <= 231250) taxRate = 0.32;
else if (totalIncomeForBracket <= 346875) taxRate = 0.35; // Note different cap for MFS
else taxRate = 0.37;
}
estimatedTax = withdrawalAmount * taxRate;
taxResultDiv.innerHTML = "Estimated Tax on Traditional IRA Withdrawal: $" + estimatedTax.toFixed(2) + " (at an estimated " + (taxRate * 100).toFixed(0) + "% marginal tax rate)";
taxResultDiv.style.backgroundColor = "#ffecb3"; // Warning yellow for estimated tax
taxResultDiv.style.color = "#856404"; // Warning text color
} else if (iraType === "roth") {
// Assuming qualified withdrawal, Roth IRA withdrawals are tax-free.
estimatedTax = 0;
taxResultDiv.innerHTML = "Estimated Tax on Roth IRA Withdrawal: $0.00 (Assuming qualified distribution)";
taxResultDiv.style.backgroundColor = "#d4edda"; // Success green
taxResultDiv.style.color = "#155724";
}
}