"Households with income in the top 20 percent have nearly $770,000, on average, in retirement savings and other financial assets -- their taxes equal 11 percent of their total retirement income. However, limiting the households to the top 5 percent of the income distribution, the tax rate increases to 16 percent -- and the top 1 percent pays 23 percent. These estimates assume retirees start pulling money out of their taxable 401(k) and IRA accounts when the IRS' required minimum distributions (RMDs) kick in at age 70-1/2 -- this age will increase to 72 next year. The tax rates were very similar under alternate scenarios that assume retirees either start withdrawing savings prior to the RMD or buy an immediate annuity with a survivor's benefit."

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