2026 Taxation Guide to Withdrawals and Income Sources
Different types of investment income and account withdrawals are taxed in very different ways. Understanding the tax treatment of each helps you sequence withdrawals strategically, manage your AGI, and minimize your overall tax liability. This guide provides a clear breakdown of how each income type is taxed across six key dimensions.
The Six Tax Dimensions
For each income type, this guide shows:
- Federal ordinary income tax: taxed at your marginal rate
- Federal LTCG rate: 0%, 15%, or 20%, depending on income
- State tax: varies by state
- Potential 3.8% Net Investment Income Tax
- Early/non-qualified withdrawal penalty
- AGI sensitivity: does this income increase your AGI and potentially trigger other thresholds?
Download the 2026 Taxation Guide to Withdrawals and Income Sources
Get the complete visual matrix showing how every major income type and account withdrawal is taxed across all six dimensions. Use it with your advisor to build a tax-efficient income and withdrawal strategy.
DOWNLOAD THE GUIDE