How much money can I take out of 401K before it is taxed and/or before my SSA is taxed

[xmasbaby0]

Up to 85% of your Social Security benefits can be taxable on your federal tax return.  There is no age limit for having to pay taxes on Social Security benefits if you have other sources of income along with the SS benefits.  When you have other income such as earnings from continuing to work, investment income, pensions, etc. up to 85% of your SS can be taxable. 

 What confuses people about this is that before you reach full retirement age, if you continue working while drawing SS, your benefits can be reduced if you earn over a certain limit. (For 2021 it was  $18,960.  For 2022 it was  $19,560  —  for 2023 $21,240)  For 2024, $22,320.  For 2025 it will be $23,400

After full retirement age, no matter how much you continue to earn, your benefits are not reduced by your earnings; your employer will still have to withhold for Social Security and Medicare.  If you work as an independent contractor then you will pay self-employment tax for Social Security and Medicare.

To see how much of your Social Security was taxable, look at lines 6a and 6b of your 2024 Form 1040

https://www.irs.gov/help/ita/are-my-social-security-or-railroad-retirement-tier-i-benefits-taxable

You need to file a federal return if half your Social Security plus your other income is

Single or Head of Household      $25,000

Married Filing Jointly                  $32,000

Married Filing Separately            $0

Some additional information:  There are 9 states that tax Social Security—Colorado, Connecticut,, Minnesota, Montana, New Mexico, Rhode Island, Utah, Vermont  and West Virginia These states offer varying degrees of income exemptions, but two mirror the federal tax schedule: MN and VT.

IF YOU WANT TO HAVE TAX WITHHELD FROM YOUR SOCIAL SECURITY BENEFITS

https://www.ssa.gov/manage-benefits/request-withhold-taxes

https://www.irs.gov/forms-pubs/about-form-w-4-v

[VolvoGirl]

As long as your 401K and SS taxable amounts are under the Standard Deduction they won't be taxed.  Do you have any other income like a pension?  What is your filing status?

For 2025 the Standard Deduction amounts are: (new as of July 5, 2025 OBBBA)

Single 15,750 + 2,000 for 65 and over or blind (17,750)

HOH 23,675 + 2,000 for 65 and over or blind (25,675)

Joint 31,500 + 1,600 for each 65 and over or blind (33,100/34,700)

Married filing Separate 15,750 + 1,600 for 65 and over or blind (17,350)

Up to 85% of Social Security becomes taxable when all your other income plus 1/2 your social security, reaches:

Married Filing Jointly: $32,000

Single or head of household: $25,000

Married Filing Separately: 0

[Rjbmr]

I am 67, have no earned income and am supplementing SSA with savings and 401K.  My mother has lived with me for about 10 years in my home.  I claim her as a dependent.  My SSA is about $31,000 per year.  How much can I take out of 401K before I'm taxed?

[VolvoGirl]

Well if you only get SS it is not taxable.  I assume you are Single?  Your Standard Deduction would be 17,750.  So any income over 17,750 will be taxable.  If you take out more than  $9,500 from the 401K it may make some of your SS taxable.  

[Rjbmr]

That was a huge help!  Thank you

[xmasbaby0]

If you are claiming your mother as a dependent your filing status could be Head of Household, so that would make your standard deduction $23, 625 (+ $2000 for age 65 or older).  

Am I Head of Household?

https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-filing-status/qualify-head-household...

• What is a "qualifying person" for Head of Household?

If you qualify as Head of Household, when you enter your marital status (single or married filing separately) into MyInfo, and then enter your qualifying dependent, TurboTax will offer HOH as your filing status.