Input items...

1) Income Tax Bracket:  Enter estimated combined Federal and State marginal income tax bracket.

2) Taxable Estate: Enter the amount that the estate tax will be calculated on. This is the amount after the unified tax equivalent asset exemption and any marital deduction. 

3) IRA In Estate: Enter the total value of the IRA that is included in the your estate.

The Results...

Estate Tax Attributable to IRA: The estate tax is calculated with and without the IRA included. The difference is the estate tax attributable to the IRA.

Less State Death Tax Credit:  The State Death Tax Credit is calculated with and without the IRA included. The difference is the State Death Tax Credit attributable to the IRA.

Net Federal Estate Tax on IRA: This is equal to the estate tax on the IRA less the State Death Tax Credit allocated to the IRA. This is also equal to the Gross IRD deduction.

Less 3% Reduction for Itemized Deductions: Your total itemized deductions can be subject to certain limitations. These limitation effectively phase out itemized deductions - deductions become smaller and income becomes larger.   For purposes of this calculator, we assume that the IRD deduction  will be subject to the 3% phase out.

Net IRD Deduction: Net Federal Estate Tax on IRA less the reduction in itemized deductions.

Income Tax on IRA: The taxable (Total IRA - Net IRD Deduction) IRA times the estimated (federal + state) income tax bracket.

Combined Income & Estate Tax: Total taxes lost!