How do I calculate my tax rate? Turbo tax used to give this information previously but they stopped?

[macuser_22]

Effective tax rate has many definitions but most just decide the tax by the total income before any deductions.  Example $80,000 total income and $10,000  tax would be a 13% tax rate.

Others use the taxable income so if after deductions the taxable income is $55,000 then it would be 20%.

It is a rather meaningless figure that does not tell you  much.

[ZEBRA53]

Thanks for your response macuser-22. The reason I am asking is because I am about to get my mandatory Distribution, after 10 years, of my Retirement 401K roll over which is in annuity with guaranteed lifetime income. The financial guy is saying that I should re-invest it while I am still working because if I cash out the  Distribution, my tax will be high, approx. 30%, which he will have to withhold. My current tax rate is 15-17% based on AGI, so I want to tell him to withhold only 15-17% not 30%.,  Thanks. 

[macuser_22]

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@ZEBRA53 wrote:

Thanks for your response macuser-22. The reason I am asking is because I am about to get my mandatory Distribution, after 10 years, of my Retirement 401K roll over which is in annuity with guaranteed lifetime income. The financial guy is saying that I should re-invest it while I am still working because if I cash out the  Distribution, my tax will be high, approx. 30%, which he will have to withhold. My current tax rate is 15-17% based on AGI, so I want to tell him to withhold only 15-17% not 30%.,  Thanks. 

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Your question is not clear.

You say 401(k) rollover and that implies that was rolled into a Traditional IRA.   But if you are still working and the money is actual in a 401(k) then your first RMD can be delayed until April 1, of the year after you retire from employment.

I don't know what you mean by "after 10 years" but if you have reached the age of 72 and must take an RMD from a IRA then you are prohibited by law from rolling that into any other tax deferred account.   You most pay the tax on the income.    If your "financial guy" is suggesting  otherwise then he know nothing about tax and RMD law.  The 401(k) rules do not apply to an IRA even if still working.

You can use TurboTax TaxCaster to calculate about what the tax will be

https://turbotax.intuit.com/tax-tools/calculators/taxcaster/

[Mike9241]

your current tax rate has nothing to do with what your tax rate would be if you cashed out your 401K.  the entire distribution in excess of any basis you have would be taxable in that year. taxable income would go up by this amount and you will end up with some income taxed at a higher effective rate. by law, a minimum of 20% must be withheld from a 401K distribution.   if you have too little withheld you could be subject to underpayment penalties.

you could use the 2021 tax rate schedule to estimate what you would pay in taxes on a total distribution.

https://www.irs.gov/pub/irs-pdf/i1040gi.pdf 

[ZEBRA53]

Thank you Mike9241 - This is the answer I was looking for. by law at lease 20% withheld not 30%, but effective tax rate for that year could change based on my filing. Thanks so much.