Skip to main content
No. of Recommendations: 1
My contributions are made at my marginal rate. My withdrawals will be made at my effective rate.

No, withdrawals are made at the marginal rate.

You keep saying this, but it is wrong. If you withdraw an additional $100, you pay 12%/22%/24% additional tax, even if your effective rate is 7%.

All you need to do is google it. "The marginal tax rate is the tax rate paid on the next dollar of income."
Print the post  

Announcements

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!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.