Can withdrawals from retirement accounts affect the tax bracket into which you fall? Whether income from retirement account withdrawals can push you into a higher tax bracket depends entirely on the type of account. Any income you earn after retirement from part-time employment or rental properties is still fully taxable at your normal income tax rate. However, if the bulk of your income comes from retirement savings accounts, such as 401(k) or individual retirement accounts (IRAs), your tax bracket may be lower than you think.
