I need to withdrawal my IRA. I need to know how much federal and state income tax to withhold. i live in NJ and I dont believe i will make more then 40k this year

Forum|Forum|5 years ago
March 14, 2021
3 replies
33 views

im well younger then retirement age but i am not contributing to it right now and receiving fines. in 2020 i made 67k if that is needed to know. just dont want to have any future problems

TurboTax Deluxe Online

fanfare

Level 15

as a new jersey resident under 59 1/2 you will have to withhold, or pay Estimated Tax of, 30% minimum.

That's what it costs you to invade your IRA in a year other than 2020.

brettdotcom14Author

Level 2

Jeez 30%?!?! I only have $1300 in it and they keep charging me fees which is why I’m trying to withdrawal it. Almost pointless after 30% state and I believe 22% and another 10% penalty

AnnetteB6

Employee Tax Expert

Instead of withdrawing the money and paying taxes on an early distribution, you should consider finding a different financial custodian for your IRA that will not charge any custodial fees. Then, you can do a direct rollover to the new custodian without incurring any tax implications. Try checking into an online brokerage account to learn about their fees for IRA accounts.

@brettdotcom14

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"