IRA Spend It or Save It Calculator

Find out how much of a traditional IRA you keep after withholding, income tax and the 10% additional tax if you cash it out, and what it could be worth at retirement if you leave it invested. Next, open the free roth ira calculator and enter your own details to see an estimate in seconds.

Your traditional IRA

Amount you would cash out

Deductible (pre-tax) money. If you made nondeductible contributions, part of a withdrawal is tax-free.

Your age now

Enter 59.5 if you are 59½.

Age at retirement

Annual return if kept invested

Federal withholding

10% unless you choose another rate (0% to 100%) on Form W-4R.

Exception to the 10% additional tax

Only applies before 59½. Leaving a job at 55 does not help with an IRA; that rule is for employer plans.

Amount the exception covers

The qualifying cost you paid this year.

Federal income tax on the withdrawal

Filing status

Other income this year

Wages and other taxable income, before the standard deduction.

Federal tax rate on the withdrawal

State income tax rate

Tax rate in retirement

Federal plus state, on later withdrawals.

Spend it or save it

Cash kept after all taxes

–

Kept invested, at retirement

–

Taxes if you cash out

–

After tax at retirement

–

If you cash out

Withdrawal–

Federal tax withheld–

Amount you receive–

Federal income tax–

10% additional tax–

State income tax–

Federal tax still owed at filing–

If you keep it invested

The IRA balance each year until retirement, and what it would be worth after tax if withdrawn then.

Age	IRA balance	After tax if withdrawn

Other exceptions to the 10% additional tax include payments to a beneficiary after the owner's death, a series of substantially equal periodic payments (72(t)), qualified disaster recovery distributions and distributions to domestic abuse victims. The 10% tax applies only to the taxable part of a withdrawal.

Results are estimates for educational purposes and are not financial, tax or legal advice.