Estimated Federal Income Tax Rate in Retirement | American Funds

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 2019*

Tax Rate Married, Filing Jointly
or Qualified Widow(er)
Single Head of Household Married, Filing Separately
10% $0–$19,400 $0–$9,700 $0–$13,850 $0–$9,700
12% $19,401–$78,950 $9,701–$39,475 $13,851–$52,850 $9,701–$39,475
22% $78,951–$168,400 $39,476–$84,200 $52,851–$84,200 $39,476–$84,200
24% $168,401–$321,450 $84,201–$160,725 $84,201–$160,700 $84,201–$160,725
32% $321,451–$408,200 $160,726–$204,100 $160,701–$204,100 $160,726–$204,100
35% $408,201–$612,350 $204,101–$510,300 $204,101–$510,300 $204,101–$306,175
37% $612,351 and over $510,301 and over $510,301 and over $306,176 and over

*This information is subject to change by the IRS.