 What people aren't realizing is the compounding effect that these withdrawals can really have on your taxes. When they're thinking about, here's how much taxes you should take out on my 401k, I'm in the 22% tax bracket, so I'll take out 22% for the Fed, 7% for the state, and I'll be done with it. They're not thinking about the impact that that money they're taking out of their 401k