stsspence
New Member

Incorrectly calculating the tax on early distribution for traditional IRA $30,000. The Federal Tax due amount shows $8,008. Results page states $2,949. What is the issue?

 
SusanY1
Expert Alumni

Retirement tax questions

It sounds like the "results" page is showing only the penalty amount, not the income tax amount.   The penalty amount of $2,949 would be correct on a distribution of $29,490. 

 

The $8,008 in tax sounds about right for someone with a total income over $84,201 (single) or $168,401 (joint).  The total income would include the premature IRA distribution. 

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