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On Christmas Day, the New York Stock Exchange and Capital Group’s U.S. offices will be closed.

In observance of the Christmas Day federal holiday, the New York Stock Exchange and Capital Group’s U.S. offices will close early on Wednesday, December 24 and will be closed on Thursday, December 25. On December 24, the New York Stock Exchange (NYSE) will close at 1 p.m. (ET) and our service centers will close at 2 p.m. (ET)

Estimated Federal Income Tax Rate in Retirement

This is the federal tax rate you expect to pay on taxable income while taking withdrawals. How your tax rate in retirement compares to your tax rate while contributing could be the most important factor in determining whether to choose a Roth or traditional 401(k)/403(b) account. The table below may help you estimate your tax bracket in retirement.

Keep in mind that retirement plan withdrawals are treated as ordinary income, so taxable withdrawals — especially a lump-sum withdrawal — may push you into a higher tax bracket. Tax brackets and rates may change in the future. The analyzer applies the tax rate you enter to all taxable income in retirement.

Federal income tax brackets for 2025*

Tax rate

Married, filing jointly or qualified widow(er)

Single Filers

Head of household

Married, filing separately

10%

$0 to $23,850

$0 to $11,925

$0 to $17,000

$0 to $11,925

12%

$23,851 to $96,950

$11,926 to $48,475

$17,001 to $64,850

$11,926 to $48,475

22%

$96,951 to $206,700

$48,476 to $103,350

$64,851 to $103,350

$48,476 to $103,350

24%

$206,701 to $394,600

$103,351 to $197,300

$103,351 to $197,300

$103,351 to $197,300

32%

$394,601 to $501,050

$197,301 to $250,525

$197,301 to $250,500

$197,301 to $250,525

35%

$501,051 to $751,600

$250,526 to $626,350

$250,501 to $626,350

$250,526 to $375,800

37%

$751,601 or more

$626,351 or more

$626,351 or more

$375,801 or more

 

*This information is subject to change by the Internal Revenue Service (IRS).