Tax-Efficient Withdrawal Calculator
Optimize retirement withdrawal strategy from Traditional IRA, Roth IRA, and taxable accounts to minimize taxes.
Portfolio Details
Taxed as ordinary income when withdrawn
Tax-free withdrawals if 59.5+ and 5-year rule met
Capital gains rates (0%/15%/20%) on growth
FL/TX/WA: 0%, CA: 9.3%, NY: 8.8%, Average: 5%
Strategy Comparison
Traditional Only
Traditional: $$60000.00
Roth: $$0.00
Taxable: $$0.00
Tax:$$16200.00
Roth OnlyBEST
Traditional: $$0.00
Roth: $$60000.00
Taxable: $$0.00
Tax:$$0.00
Taxable First
Traditional: $$0.00
Roth: $$0.00
Taxable: $$60000.00
Tax:$$9000.00
Optimized Mix
Traditional: $$0.00
Roth: $$0.00
Taxable: $$60000.00
Tax:$$9000.00
Bracket Fill
Traditional: $$60000.00
Roth: $$0.00
Taxable: $$0.00
Tax:$$16200.00
Best Strategy: Roth Only
Tax on Withdrawal
$$0.00
Savings vs Worst
$$16200.00
Using optimized withdrawal order saves $$16200.00/year. Over 10 years: $$162000.00 additional retirement income.
Withdrawal Priority Order
Recommended order: 1. Taxable accounts (lowest capital gains rates). 2. Traditional IRA/401(k) (fill lower brackets). 3. Roth (preserve for high-tax years, late retirement, estate). Exceptions: Use Roth if need tax-free income for specific year, if expecting higher future rates, or for large expenses.
Account Type Tax Treatment
Traditional
Ordinary income rates
22% federal + 5.0% state
Roth
Tax-free withdrawals
No federal or state tax
Taxable
Capital gains rates
20% federal + state on gains
Key Strategies
Bracket fill: Withdraw Traditional up to bracket limit, avoid pushing into higher bracket. Roth ladder: Convert Traditional to Roth in low-income years. Tax-loss harvesting: Offset taxable gains with losses. Asset location: Keep high-growth in Roth, bonds in Traditional. Charitable: Use Traditional for QCD (tax-free up to $105K after 70.5).
Advanced Considerations
Social Security taxation: Income affects SS taxation (provisional income). Medicare IRMAA: High income increases premiums. AMT considerations for complex situations. Estate planning: Roth inherits tax-free, better for heirs. State differences: Some states exempt retirement income. Consider all factors for holistic planning.