Hi JimPK,
Thanks for your question today. Let me add my views to other tax pros who may see your question. The amounts taken from your IRA account are taxable if they were sheltered when contributed. There are times when some of the funds in a retirement account are considered non deductible and therefore will not be subject to taxes when withdrawn. If the assumption made is that all contributions were sheltered when contributed, they would be subject to taxation when withdrawn.
Additionally, Social Security is means tested and are subject to taxes whenever one half of your social security plus other taxable income, like your IRA distributions, exceeds $34,000 in your particular case.
If the calculation shown above stays under the $34000 amount, the social security is not taxed and the taxes would be stictly based on the IRA distributions received. Further, If those IRA distribution are less than the standard deduction, you'd pay no taxes for the year based on my understanding of your question!
Have a Great Day!
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
