Withdrawals & RMDs
How much to withdraw so the check is the amount you need
A gross distribution calculator: clients enter the net amount they need, their tax rate and whether a penalty applies, and see the gross withdrawal required.
Included in Network. 14-day trial, cancel any time.
How much do I need to withdraw to net a specific amount?
Divide the net amount you need by one minus your combined tax and penalty rate. To net $20,000 at a 24% tax rate with no penalty, withdraw $20,000 ÷ 0.76 = $26,316. If the additional tax on early distributions applies (10% before age 59½ (age-55 separation-from-service exception for plans)2026 · IRS), the divisor shrinks further and the gross rises.
Before a large planned expense in retirement
Retirees planning a roof, a car or a gift to a child know the amount they need, not the amount to request. Custodian forms ask for a gross figure and a withholding percentage, and clients worry about getting it wrong. They search before filling in the form.
What the client types into a search box
“how much do I need to take out of my ira to get 20000”
How a client works through it
Enter the net amount
What the client needs to receive.
Enter the tax rate
The federal rate to apply to the withdrawal.
Toggle the penalty
Switch on the early-withdrawal penalty if under 59½.
See the gross
Gross distribution, tax, penalty and the total.
What lands in your inbox
When a client asks your firm to review the result, the request arrives as a contact record with their inputs and results attached, by email and, on paid plans, by webhook to your CRM.
Received
The desired net and tax rate show the size of the withdrawal. Large amounts relative to normal income suggest bracket effects. A penalty switched on means the client is under 59½, a cue to look for exceptions or alternatives.
Why does the gross rise faster than the tax rate?
Gross Distribution Needed includes enough to cover tax on the extra amount withdrawn for tax. Federal Income Tax and Early Withdrawal Penalty are figured on the gross, and Total Tax & Penalty is the gap between gross and net.
Clients can use the gross figure and the tax rate as the withholding instruction on a custodian form, then ask the firm to confirm.
Results shown: Gross Distribution Needed · Desired Net Amount · Federal Income Tax · Early Withdrawal Penalty · Total Tax & Penalty.
Why is a withdrawal request a tax-planning moment?
A lump withdrawal can push income into a higher bracket, raise the taxable share of Social Security and affect Medicare premiums. A firm that sees the request beforehand can suggest splitting it across years, using a Roth or taxable account, or adjusting withholding.
It also prevents under-withholding, a common cause of surprise balances due.
Follow-ups this request opens
- Choose which account to draw from to minimize tax
- Split a large withdrawal across two tax years
- Set withholding so the client doesn't owe at filing
- Check Social Security and Medicare premium effects
What this calculator leaves out
- Applies a flat rate, not the full bracket schedule.
- State tax is excluded.
- Penalty exceptions are not applied.
- Roth and basis amounts are not modeled.
Platform disclaimer shown under the calculator: Estimates only. Applies a flat tax rate and an optional 10% early-withdrawal penalty (generally for withdrawals before age 59½). Excludes state tax and other adjustments. Not tax advice.
Compliance note for firms
Recommending a withdrawal amount and withholding rate is written tax advice under Circular 230 §10.37, and should consider the client's full-year income. Advisers placing the withdrawal should confirm suitability of the source account.
Not legal advice. See our disclaimer and the guide to compliance for client calculators.
2026 figures this page relies on
| Figure | Value | Tax year | Source |
|---|---|---|---|
| Additional tax on early retirement distributions | 10% before age 59½ (age-55 separation-from-service exception for plans) | 2026 | IRS |
The same values drive the calculator. Full list on the 2026 figures page.
Terms your client sees in the calculator
These definitions appear in the calculator's collapsible Definitions block, so clients don't have to call to ask what a label means.
- Gross distribution
- The total amount withdrawn from a retirement account before taxes and any penalty are taken out. To end up with a set amount of cash, the gross must be larger than that amount. This calculator divides the desired net by one minus the combined tax and penalty rate to find it.
- Desired net amount
- The cash you want in hand after federal income tax and any early-withdrawal penalty. It is the starting point of the calculation. For example, netting $20,000 at a 24% tax rate with no penalty requires a gross distribution of about $26,316.
- Early withdrawal penalty
- An additional 10% tax that generally applies to retirement-account withdrawals taken before age 59½, as stated in this calculator. It is charged on top of regular income tax. Several exceptions exist, such as certain disability, medical or separation-from-service cases, so check whether one applies before assuming the penalty.
- Marginal tax rate
- The federal income tax rate on your last dollar of income. A pre-tax retirement withdrawal is added to your other income, so it is taxed at your marginal rate, and a large withdrawal can push part of it into a higher bracket. This calculator applies one flat rate to the whole distribution.
- Gross-up
- Working backward from a net amount to the pre-tax amount that produces it. Simply adding the tax rate to the net figure understates the need, because the tax is charged on the gross, including the extra withdrawn to cover it. That is why this calculator divides rather than multiplies.
- Tax withholding
- Tax the plan administrator holds back from a distribution and sends to the IRS. The amount withheld is a prepayment, not the final tax, which is settled on your return. If withholding is less than the tax actually owed, the difference is due at filing, so the net you receive and the net you keep can differ.
In our glossary: Marginal tax rate · Early withdrawal penalty
Gross Distribution calculator: questions from firms and clients
What tax rate should I use?
Your expected marginal rate including the withdrawal. A firm can estimate it precisely.
Should I include state tax?
The calculator is federal only; add your state rate for a combined estimate if your state taxes withdrawals.
When does the penalty apply?
10% before age 59½ (age-55 separation-from-service exception for plans)2026 · IRS.
Will the custodian withhold the right amount?
Only if you ask for the right percentage. IRAs let you choose; employer plans withhold 20% on cash distributions.
Is it better to withdraw over two years?
Sometimes, if it keeps income in a lower bracket.
Does this apply to Roth accounts?
Qualified Roth withdrawals are tax-free, so no gross-up is needed.
Can I use this for RMDs?
Yes, to see what an RMD nets after withholding.
Which plan includes it?
Network. See pricing.
No question matches that filter. Clear it to see them all, search the whole site, or ask us directly; we reply within one business day.
Clients who ask this usually ask next
Early Withdrawal Cost
how much will I lose if I cash out my 401k
Required Minimum Distribution (RMD)
how much do I have to take out of my IRA this year
Marginal Tax Rate
what tax bracket am I in and what happens if I earn more
All “Withdrawals & RMDs” calculators · Everything in Retirement
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