Best Retirement Withdrawal Calculator | See If You Run Out of Money
POINTS
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Withdrawals before 59½ usually face 10% penalty + income tax
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After 59½, withdrawals are penalty-free but taxable for traditional accounts
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Roth IRA contributions can be withdrawn anytime tax and penalty free
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Roth earnings are tax-free only after 59½ + 5-year rule
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Traditional IRA/401(k) withdrawals are taxed as ordinary income
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At 73, Required Minimum Distributions (RMDs) apply to traditional accounts
A retirement withdrawal is money taken from a retirement account during retirement.
These withdrawals often provide a significant portion of a retiree’s income and can influence both tax liability and long-term financial security.
| Account Type | Normal Withdrawal Age | Early Withdrawal Penalty |
|---|---|---|
| Traditional IRA | 59½ | Generally 10% penalty + income tax before 59½ |
| Roth IRA | Contributions can be withdrawn anytime; earnings generally after 59½ and 5-year rule | Earnings may be taxed and penalized if withdrawn early |
| 401(k) | 59½ | Generally 10% penalty + income tax before 59½ |
How to fill out Your Retirement Withdrawal Details
Current age: Enter your current age. The calculator uses this value to determine how many years you have left to save before retirement.
Age at retirement: Enter the age you plan to retire. This tells the calculator when you expect to stop working and begin withdrawing money from your retirement savings.
Many people choose retirement ages between 62 and 67, but your ideal retirement age may differ depending on your financial goals.
Annual household income: Enter your total annual household income before taxes. This should include salary, self-employment income, and any other regular sources of earnings that contribute to your household finances.
Percent of income to save: Enter the percentage of your income that you plan to save for retirement each year. For example, if you save 10% of your income, enter 10.
Current retirement savings: Enter the total value of your retirement accounts today such as 401(k) plans, IRAs, pension balances, and other investment accounts intended for retirement.
Expected income increase: Estimate future earnings and retirement contributions. A common long-term assumption is 2% per year, though your actual income growth may be higher or lower.
Income you want in retirement: Enter the percentage of your final working income that you would like to replace during retirement.
Years in retirement: Input the number of years you expect to spend in retirement. This determines how long your retirement savings will need to support withdrawals.
How WealthforSeniors Retirement Withdrawal Calculator Works
Our calculator projects how much you could accumulate before retirement based on your
- Current savings
- Annual contributions
- Expected salary increases, and
- Investment growth.
Once you reach retirement, the calculator estimates how much income you will need based on the percentage of income you want to replace during retirement.
It then models annual withdrawals, taxes, inflation, and investment returns to determine how your savings may change over time and whether your retirement funds are likely to last throughout retirement.
When calculating your retirement projections, our default assumptions include:
- A 7% annual rate of return before retirement
- 4% annual rate of return during retirement
- 3% annual inflation rate. Inflation increases the cost of living over time and affects the amount of income needed throughout retirement.
- An annual income increase based on your input.
- 12% withdrawal tax assumption
- No Social Security income. If you expect Social Security benefits or pension income, your actual retirement needs may differ.
- Retirement period based on your selected number of years in retirement.
Our calculator displays your projected retirement savings at retirement, estimated annual retirement expenses, the age at which your savings may run out, and a year-by-year breakdown of withdrawals, taxes, interest earned, and remaining account balances.
You can explore different retirement scenarios by adjusting your income, savings rate, retirement age, expected salary growth, and desired retirement income level.
