Tax-Efficient Withdrawal Calculator — Optimize Retirement Withdrawals

Tax-Efficient Withdrawal Calculator

Calculate the most tax-efficient withdrawal strategy for your retirement accounts. Optimize withdrawals from Traditional, Roth, and Taxable accounts to minimize taxes and maximize savings.

Step 1: Account Balances & Tax Rates

$500,000
$200,000
$100,000
22%

Understanding Account Types

Traditional accounts are taxed upon withdrawal. Roth accounts are tax-free in retirement. Taxable accounts have capital gains tax. The optimal withdrawal order minimizes your overall tax burden.

Step 2: Withdrawal Strategy

Tax-Efficient Withdrawal Strategy

A tax-efficient strategy typically involves withdrawing from taxable accounts first, then traditional accounts, and Roth accounts last. This allows tax-deferred growth to continue as long as possible.

Tax-Efficient Withdrawal Results

Summary
Strategy Comparison
Breakdown

Estimated Tax Savings with Optimal Strategy

$42,500
Over 20 years compared to Traditional-first strategy
Recommended Withdrawal Order
Taxable → Traditional → Roth
Annual Tax Liability
$8,250
Portfolio Longevity
24 years
Total Taxes Paid
$165,000

Withdrawal Strategy Comparison

Withdrawal Strategy Annual Tax Total Taxes (20 yrs) Portfolio Longevity

Annual Withdrawal Breakdown

Tax-Efficient Withdrawal Formula

Optimal Strategy = Minimize(Tax Rate × Withdrawal)

To minimize taxes: Withdraw from accounts with the lowest tax impact first. Consider required minimum distributions (RMDs) from traditional accounts after age 72.

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