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Standard 401K withdrawal

I will be receiving SS next Feb when I am 65. I have a standard 401K with balance of $100,000.   How will my taxes be affected should I take a partial withdrawals?  

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Standard 401K withdrawal

The 401k withdrawal will be added to your total income and taxed at your regular tax rate (and may push  you into a higher tax bracket).  

 

For SS....

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

dev145
Employee Tax Expert

Standard 401K withdrawal

Generally social security alone is not a taxable income but if you have other sources of income i.e. wages, pension and other retirement income, interest or dividends etc.  up to 85% of your social security may be taxable depending on the total income and filing status. 

 

Your benefits may be taxable if the total of (1) one-half of your benefits, plus (2) all of your other income, including tax-exempt interest, is greater than the base amount for your filing status.

The base amount for your filing status is:

  • $25,000 if you're single, head of household, or qualifying surviving spouse,
  • $25,000 if you're married filing separately and lived apart from your spouse for the entire year,
  • $32,000 if you're married filing jointly,
  • $0 if you're married filing separately and lived with your spouse at any time during the tax year.

https://www.irs.gov/faqs/social-security-income#:~:text=Your%20benefits%20may,the%20tax%20year.

 

So in short , your other income and half of social security benefits will determine your tax rate. 

 

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