Annual rates of return can vary significantly and will depend upon your asset allocation and other variables. Generally, higher target returns carry greater risk.
| Married, filing jointly |
Head of Household |
Single filers |
Tax Rate |
| $0 - $23,850 |
$0 -
$17,000 |
$0 -
$11,925 |
10% |
| $23,851 - $96,950 |
$17,001 - $64,850 |
$11,926 - $48,475 |
12% |
| $96,951 - $206,700 |
$65,851 - $103,350 |
$48,476 - $103,350 |
22% |
| $206,701 - $394,600 |
$103,351 - $197,300 |
$103,351 - $197,300 |
24% |
| $394,601 - $501,050 |
$197,301 - $250,500 |
$197,301 - $250,525 |
32% |
| $501,051 - $751,600 |
$250,501 - $626,350 |
$250,526 - $626,350 |
35% |
| More than $751,600 |
More than $626,350 |
More than $626,350 |
37% |
Source: IRS, 2025 tax rate schedules.
If the IRA holder turns 73 this year, he or she can defer the first distribution until April 1 of the next year. If the holder is older, he or she would normally be required to take an RMD before December 31 of this year. RMDs are considered taxable income for the year in which they are taken.