IRA Withdrawal Calculator
Works for traditional and Roth IRAs. For a traditional IRA enter your tax rate; for a Roth set it to 0 — qualified Roth withdrawals are tax-free, which is why the same balance lasts longer.
Traditional vs. Roth: same balance, different lifespan
Run $400,000 with $2,500 a month at 5% return and 2.5% inflation. With 0% tax (Roth) the money lasts about 16 years. With 15% tax (traditional) it lasts about 13, because every $2,500 of spending requires a $2,941 withdrawal. That three-year gap is the after-tax value of a Roth, and it is why conversions during low-income years are worth modelling.
How the calculator works
Each month the balance earns one month of return, then the withdrawal is taken out. Every 12 months the withdrawal is increased by the inflation rate so your spending power stays level. If you enter a tax rate, each withdrawal is grossed up so the after-tax amount you keep matches the number you typed. The calculator stops when the balance hits zero, or after 100 years if it never does.
The "to last 20 / 25 / 30 years" figures are solved by bisection: the largest starting withdrawal that still survives that horizon under the same return and inflation assumptions.
IRA withdrawal rules worth knowing
- Before 59½. Traditional IRA withdrawals face a 10% penalty plus tax, with exceptions for first-home purchase ($10,000), higher education, certain medical costs, and substantially equal periodic payments (72(t)). Roth contributions (not earnings) can be withdrawn any time tax- and penalty-free.
- RMDs. Traditional IRAs require distributions from age 73. Roth IRAs have no RMDs for the original owner.
- Inherited IRAs. Most non-spouse beneficiaries must empty the account within 10 years — a large tax bill if taken as a lump, so spreading withdrawals across the decade matters.
- Qualified charitable distributions. From age 70½, up to $108,000 a year (2025) can go directly to charity, counting toward the RMD without being taxed.
Choosing realistic inputs
- Annual return. 4–5% is a conservative planning number for a balanced portfolio; 6–7% is closer to long-run history for 60/40; cash and CDs are 3–5% today but fall when rates fall.
- Inflation. The Federal Reserve targets 2%; the 30-year U.S. average is about 2.5%. Healthcare inflation runs higher, so retirees with large medical costs should test 3–3.5%.
- Withdrawal. Use what you actually spend, minus guaranteed income (Social Security, pension, annuity). That net gap is what savings must cover.
Making an IRA last longer
Beyond spending less, the levers are tax and sequencing. Fill low brackets with traditional withdrawals or Roth conversions in the years before Social Security and RMDs begin. Keep one to two years of planned withdrawals in a money market fund inside the IRA so a market fall does not force stock sales. And reconsider the withdrawal rate every year rather than fixing it for life — a 10% cut after a bad year adds more survival time than almost any investment change.
Frequently asked questions
How much can I withdraw from my IRA each month?
Enter your balance above; the "to last 30 years" box gives the inflation-adjusted monthly amount. As a rough rule it is 4–5% of the balance a year before tax at 5% expected returns.
Is a Roth IRA withdrawal taxable?
Qualified withdrawals — after age 59½ and once the account is five years old — are entirely tax-free. Contributions can be withdrawn at any age tax-free; only earnings withdrawn early are taxed and penalised.
When do IRA required minimum distributions start?
At age 73 for anyone born 1951–1959 and age 75 for those born in 1960 or later. Roth IRAs have no lifetime RMDs.
Can I withdraw from an IRA at 55 without penalty?
Not normally. The Rule of 55 applies only to 401(k)s. For an IRA you would need a 72(t) series of substantially equal payments, or one of the statutory exceptions.
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SavingsLast calculators are educational estimates. They assume a constant average return and steady inflation; real markets are volatile and sequence-of-returns risk can shorten how long money lasts. Nothing here is financial, investment, tax, or legal advice. Consult a qualified professional before making decisions.