Tool · Living Rulebook
Withdrawal Tax Illustration
Explore an ordinary-income bracket calculation for an assumed Traditional IRA withdrawal. Other figures are separate scenario prompts, not a tax or cash forecast.
Federal ordinary-bracket increment only
$5,500from $25,000 assumed taxable income addedWhere the taxable portion lands
Read before using this illustration
This is a bracket exercise, not an estimate of total federal or state tax, a net withdrawal, or a tax return. Qualified dividends and capital gains can alter the actual tax difference when ordinary income rises, even if you exclude them from this input. It also omits phaseouts, deductions, credits, Social Security taxation, Medicare IRMAA, ACA subsidies, net investment income tax, withholding, and state rules. An exception to the 10% tax must actually qualify and may require Form 5329. Do not use these numbers to set a withdrawal or withholding amount.
Method: subtract the 2026 ordinary-income schedule tax on the starting amount from the schedule tax after adding the assumed taxable share. See IRS Rev. Proc. 2025-32, IRS Topic 557, and Form 8606.
Methodology and assumptions
The tool subtracts schedule tax on assumed 2026 taxable ordinary income before a withdrawal from schedule tax after adding the assumed taxable share. It uses the seven rates and filing-status thresholds in IRS Revenue Procedure 2025-32, without IRS tax-table rounding. The 10% scenario applies only to the taxable share if under age 59½ is selected without an assumed exception; the optional state figure multiplies that share by a user-chosen flat rate. These components are not added into a total. It does not determine IRA basis, qualified dividends or capital-gain interactions, deductions, credits, withholding, Social Security taxation, Medicare IRMAA, ACA subsidies, net investment income tax, state law, or eligibility for exceptions. James Collins must approve new assumptions and later updates; he approved this October 1, 2026 source-checked revision on October 17, 2026. It is not a return, projection, quote, or recommendation.