No. of Recommendations: 1
Greetings, June101, and welcome. You asked:

Does the retirement calculator deduct federal taxes due on investment profits or should expected taxes be included in the amount of monthly income we estimate? I think it calls for living expenses so I'm not sure if taxes shoud be included in that amount.

Yes, when retirement income is taken from investments the calculator computes a gross withdrawal so income taxes can be paid at the marginal rate you provided. In other words, it you want $500 per month in retirement and use a 28% marginal rate, it takes $694 from the investment pool to pay the income as well as income taxes.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
Live Video Event Monday!
The GP team is hosting a live video event on Monday at 4 p.m. ET. Don't worry if you can't make it — we'll have a replay and a transcript. Click for more!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.