We are married, filing jointly, no dependents. My husband is 67 and I am 64. I'm trying to get an estimate of what our 2023 return will look like (realizing taxes will be changing). I have three questions:
1. Our only income right now for 2023 will be social security benefits of $63,923 (combined). This calculates out to $0 tax owed. I'm assuming that is correct?
2. However, my husband wants to withdraw approximately $30K from his 401K account (over the course of the year) to supplement our income. TurboTax calculated that (based on 2022 numbers) that we would owe $5466 if we do that! ($3,000 of that is the 10% penalty). Does that amount sound right?
3. I'm trying to convince him that it makes MUCH more sense to take the funds out of our savings instead of the 401K, but he states that he wants to hold onto the cash in the savings and not use that until we absolutely have to. In my opinion, it should be the other way around! How do I convince him of this?
Thanks for any input! 🙂
