Savings Withdrawal Tax Impact Calculator
See how much of a 401(k), IRA, Roth or brokerage withdrawal you keep after federal and state tax and the 10% early-withdrawal penalty — or gross up to find the withdrawal that nets a target — using one rate or the 2026 federal brackets.
How it works
Taxable part = gross × taxable % · Tax = taxable part × (federal rate + state rate + 10% penalty if early) · After-tax = gross − tax · Gross needed = target ÷ (1 − taxable % × total rate) · Bracket mode: federal tax = tax(other income + withdrawal) − tax(other income)
Not every dollar withdrawn is yours to spend. Withdrawals from traditional (pre-tax) 401(k)s, 403(b)s and IRAs are fully taxable as ordinary income, qualified Roth withdrawals are tax-free, and a taxable brokerage account sits in between because only the gain is taxed, usually at capital gains rates. The quick method multiplies the taxable part by one marginal rate. The bracket method is more exact for US filers: it works out your 2026 federal tax with and without the withdrawal — using your filing status, other income, the standard deduction and the extra deductions for people 65 and older — and the difference is the tax the withdrawal causes. That shows when part of a withdrawal is covered by the standard deduction or when it spills into a higher bracket. State and local tax is added at the rate you enter, and money taken from a retirement account before age 59½ usually owes a 10% additional tax unless an exception applies. In “What to withdraw” mode the calculator grosses up a spending target, so you can see how much more than you need you must take out to cover the tax.
Worked example
A $40,000 withdrawal from a traditional account (100% taxable) at a 22% marginal rate incurs $8,800 of tax, leaving $31,200 — an effective 22%. Taken at age 50 with no exception, the 10% penalty adds $4,000, leaving $27,200. With the bracket method instead, a single filer with $50,000 of other income has $33,900 of taxable income and $3,820 of federal tax without the withdrawal; adding the $40,000 raises taxable income to $73,900 and the tax to $10,970. The withdrawal therefore costs $7,150 — $16,500 of it taxed at 12% and $23,500 at 22% — an effective 17.9%, leaving $32,850. To net $31,200 from a fully taxable account at 22% plus a 5% state tax, you would need to withdraw $31,200 ÷ (1 − 0.27) = $42,739.73.
Sources: IRS — Tax inflation adjustments for tax year 2026 (IR-2025-103) · IRS — Rev. Proc. 2025-32 (2026 brackets, capital gains thresholds) · IRS — Topic 558, Additional tax on early distributions
Frequently asked questions
How much should I withdraw to actually net a target?
Choose “What to withdraw” and enter what you need after tax. With a single rate the answer is target ÷ (1 − taxable % × total rate): to net $31,200 when withdrawals are fully taxable at 22%, you need $40,000. With the bracket method the calculator searches for the exact gross amount, since a bigger withdrawal can reach a higher bracket.
Why is a Roth withdrawal treated differently?
Roth contributions were already taxed, so qualified withdrawals — including growth — are tax-free once you are 59½ and the account has been open five years. Before that, your contributions still come out tax-free, but earnings can be taxed and penalized; enter the earnings share as the taxable part.
When does the 10% early-withdrawal penalty apply?
Generally on the taxable part of withdrawals from 401(k)s and IRAs before age 59½. Exceptions include leaving your job in or after the year you turn 55 (for that employer’s 401(k)), disability, substantially equal periodic payments, certain medical costs and others. It does not apply to taxable brokerage accounts.
Why was 20% withheld when I cashed out my 401(k)?
Plans must withhold 20% of an eligible distribution paid to you instead of rolled over. That is a prepayment, not the final tax: if your real federal tax plus any penalty is higher, you owe the rest when you file; if lower, you get a refund. Enter the withholding under More options to see both figures.
Does a large withdrawal push me into a higher bracket?
It can. Only the part of the withdrawal above each bracket threshold is taxed at the higher rate, and the bracket method shows exactly how the withdrawal fills each bracket. Extra income can also make more of your Social Security taxable or raise Medicare premiums, which this calculator does not model.
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Educational estimate only — tax rules, brackets and thresholds change and vary by jurisdiction. Not tax advice; confirm with a qualified professional.