If you will also have social security, then you would end up having taxable income. At minimum half of your social security will be taxable since you would have other taxable income. Depending on your situation, up to 85% of it is taxed.
For instance, if you are single and if your withdrawal is $14,600 and you receive $15,000 in social security for the year, then you would have combined income of $22,100. Which would leave you with taxable income of $7,500.
If you fall into the following, 85% of your social security is taxable income
- Single with income above $34,000
- Married Filing Jointly with income above $44,000
- Married Filing Separate regardless of income
If you fall into the following, 50% of your social security is taxable income
- Single with combined income between $25,000-$34,000
- Married Filing Jointly with combined income between $32,000 and $44,000
Your combined income is calculated by adding your
- AGI plus
- Nontaxable Interest plus
- 1/2 of your social security Benefits
Social Security Benefits Taxes
So, with SS and that withdraw, your AGI will not be $0.
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