Trying to net a specific dollar amount from an IRA distribution? Don’t guess the gross. Use this simple formula (and our calculator) to back into the right gross amount after withholding. When retirees ask for a certain after-tax amount from their IRA, the most common mistake is adding tax on top of the net. That approach almost always leaves you short. The correct way is to divide the net by what you keep after withholding. This post shows the simple math, a quick example, and the error to avoid—plus an embeddable calculator to do it for you.

The Retirement Budget Calculator is a powerful retirement planning tool with budgeting, tax planning, Social Security optimization, Monte Carlo analysis, withdrawal strategies, and more. Plan your retirement with confidence.