Estimated Federal Tax Rate in Retirement

This is the federal tax rate your client expects to pay on taxable income while taking withdrawals.

How your client’s tax rate in retirement compares to your client’s 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 client’s tax bracket in retirement.

Keep in mind that retirement plan withdrawals from traditional accounts are treated as ordinary income, so taxable withdrawals — especially a lump-sum withdrawal — may push your client 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 2024*

Tax rate

Married, filing jointly or qualified widow(er)

Single

Head of household

Married, filing separately

10%

$0–$23,200

$0–$11,600

$0–$16,550

$0–$11,600

12%

$23,201–$94,300

$11,601–$47,150

$16,551–$63,100

$11,601–$47,150

22%

$94,301–$201,050

$47,151–$100,525

$63,101–$100,500

$47,151–$100,525

24%

$201,051–$383,900

$100,526–$191,950

$100,501–$191,950

$100,526–$191,950

32%

$383,901–$487,450

$191,951–$243,725

$191,951–$243,700

$191,951–$243,725

35%

$487,451–$731,200

$243,726–$609,350

$243,701–$609,350

$243,726–$365,600

37%

$731,201 and over

$609,351 and over

$609,351 and over

$365,601 and over

 

*This information is subject to change by the Internal Revenue Service (IRS).
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Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses and summary prospectuses, which can be obtained from a financial professional and should be read carefully before investing.
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