Find Out What The IRS Is Scheduled To Take From Your Retirement — Before It’s Too Late To Change It
Most people spend 30 years building a nest egg and five minutes thinking about the taxes. This shows you the number — in about four minutes, with no spreadsheet.
Or scroll to learn moreYour Retirement Accounts
Approximate balances are fine — round numbers work.
Your Expected Retirement Income
What you expect to receive each year once you’re retired.
Your Withdrawal Plan
How you draw income in retirement is what determines your tax exposure.
Your Estimated Retirement Tax Bill
Based on your current plan, over a ~25-year retirement.
What Does This Number Actually Mean?
That figure isn’t a one-time payment. It’s the total the IRS is scheduled to collect from your tax-deferred savings over your retirement — mostly through something called Required Minimum Distributions, or RMDs.
Starting at age 73, the government forces you to withdraw money from your IRA or 401(k) every year — whether you need it or not — and every dollar that comes out is taxed as ordinary income, the same rate as a paycheck.
You don’t get a choice. Skip a required withdrawal and you face a penalty on top of the taxes. It’s a system built to collect — and most people don’t find out how much until they’re already locked in.
Every year you wait, the balance grows — and so does the IRS’s share. At roughly 6% growth, your projected tax bill increases by about $0 per year in additional liability. The window to do something about this is now — not at retirement.
Most Retirement Taxes Aren’t Mandatory. They’re The Result Of Not Planning.
The IRS doesn’t distinguish between taxes you had to pay and taxes you paid because nobody showed you an alternative. Every item below is real, legal, and avoidable — with the right strategy and enough runway to act.
Tax On 401(k) & IRA Withdrawals
Every dollar pulled from a traditional 401(k) or IRA is taxed as ordinary income — the same rate as your paycheck. For most retirees this is the single largest tax line, and the most avoidable.
Tax On Social Security Benefits
Up to 85% of your Social Security benefit can be taxed once your combined income clears certain thresholds — thresholds that haven’t been adjusted for inflation since 1984, so most retirees get hit.
Required Minimum Distributions (RMDs)
At age 73, the IRS forces withdrawals from your tax-deferred accounts whether you need the money or not. These stack on top of your other income and can push you into a higher bracket without warning.
Capital Gains Tax On Investments
Selling appreciated holdings in a taxable account triggers capital-gains tax. Long-term rates are lower than ordinary income — but stacked on top of RMDs and Social Security, they can still bump you into a higher tier.
IRMAA Medicare Surcharges
If your income in retirement exceeds the IRMAA thresholds, you pay extra for Medicare Parts B and D — often $1,000 to $5,000+ a year — and many retirees trigger it without ever realizing why their premiums jumped.
State Income Tax On Retirement Income
Most states tax 401(k) and IRA withdrawals; some tax Social Security; a handful tax none of it. Where you retire — and how you draw income — can swing your bill by tens of thousands over 20 years.
Estate & Inherited-IRA Taxes
Under current rules, most non-spouse beneficiaries must empty an inherited IRA within 10 years — meaning your heirs could pay ordinary income tax on everything left in your traditional accounts, possibly at their own peak-earning rates.
Net Investment Income Tax (NIIT)
A 3.8% surtax applies to investment income — dividends, interest, capital gains — once your modified AGI crosses $200,000 (single) or $250,000 (married). It’s largely invisible until, suddenly, it isn’t.
Tom Ligare Has Spent 20+ Years Helping People Keep More Of What They’ve Earned.
Most advisors focus on growing your money. Tom focuses on what happens after it grows — because an account that doubles in value doesn’t help much if the IRS takes a quarter of it on the way out. He’s helped clients restructure their retirement savings to reduce, defer, or eliminate this exact tax bill.
“The best time to fix your retirement tax bill was ten years ago. The second best time is today.”
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Year-by-year tax projection, a Roth-conversion comparison, your RMD schedule, and Tom’s notes on what to do about it. We’ll send it now.
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This calculator provides general information and rough estimates for educational purposes only. It is not tax, legal, investment, or financial advice, and pursuant to IRS Circular 230 it may not be used to avoid tax penalties. Figures are illustrative and based on simplified assumptions — including a roughly 25-year retirement, a roughly 6% annual growth rate, current federal tax brackets and the standard deduction, and a simplified treatment of state taxes, Social Security taxation, and RMDs. Your actual tax liability will differ based on your circumstances, future tax-law changes, and investment performance. Speak with a qualified tax advisor or financial professional before making any decisions about your situation.
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