Tax-bracket sentence example
Hypothetically, let's say you're in the 28 percent tax bracket and you have to withdraw $20,000 from your IRA in a specific year.
How much you will save depends on your personal tax bracket.
In some cases, giving up your job may even place you in a lower tax bracket and save money there as well.
The advantage to the employee is that he or she will likely be in a lower tax bracket after retirement and will pay less in taxes than during his or her prime earning years.
Multiply your income against the percentage of tax bracket to determine your total, yearly tax liability.Advertisement