Hi,
Good morning!
my husband and I retired this year, we withdraw certain amount from our annuity retirement account and put in our joint retirement account by mistake. We were told by our financial company this withdrawal will be treated as ordinary income for 2024 and need to pay 10% tax ( around $6k).
please help to answer our questions below:
1. Is any penalty for this so called “ordinary income “ since no withholding tax?
2. the taxable income for 2024 will increase a lot due to this mistake withdrawal. the tax bracket may jump to high one. Therefore is any way to reduce taxable income for 2024?
3. shall we pay estimate tax on 4th quarter of 2024?
4. We are consider to sell our house in 2025, any things need to be prepared beforehand?
Please help to review our questions and give us comments and suggestions. Thank you so much!
Mrs. Chen
Any way can help
