Swuday
New Member

3.8% Medicare Tax on Net Investment Income

Hypothetical:

$100,000 for yearly pension

$400,000 for yearly withdrawal from Traditional/Rollover IRA

Tax Status: Filing Jointly

 

My question is:

Does the money distributed from the IRA constitute a "Net Investment Income" as described for the 3.8% Medicare Tax?

If it does, would it be paid on the amount over $250,000?