My spouse has an inherited tradtional IRA from a deceased brother. The ira was $32,000 in 2018. 2018 she took $11,000 and 2019 she took $11,000.
The bank asked if she would like taxes taken OUT before the contribution was given to her.
I told her to say no since we would use the tax rate our income came to be for the year.
What tax rate or tax % would the bank take taxes out at? Is this a standard rate by the IRS (again this is NOT a contribution penalty- this is a death/inherited tradtional ira).
**seems pointless to have taxes taken out BY THE BANK (which reports it to the IRS on the 1099-R anyway) when your going to pay taxes again on any amount at tax time as it goes into your income. Basically not getting the full amount of the distribution to use by giving taxes money back.
