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New Member
posted Oct 16, 2018 12:42:18 PM

401k withdrawal

I am near the the top of the 12% tax bracket for 2018 income. How do I calculate the max withdraw from my 401k without paying 22% on it? I retired in May and made the maximum contributions to my 401k in 2018 before I retired. I have two pensions and my wife and I are both collecting social security. We file jointly. I am not required to make minimum 401k withdrawals yet. Only my pay stubs before retirement list taxable gross but not my pensions or SS. The IRS tax estimator online does not help, and TurboTax for 2018 is not available yet. I would appreciate help to calculate the highest withdrawal I can make without going over 12% tax.

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1 Replies
Level 15
Jun 29, 2019 9:07:29 AM

In a nutshell, you will be 22% tax on the amount on line 10 of the 2018 form 1040 that is **OVER** $82,500 if filing single, or $165,000 if filing joint.

Since you're filing joint, that means you will pay $8,907 on the first $165,000 of income on line 10, and then $0.22 (twenty two cents) more for each dollar over $165,000. Keep in mind the IRS rounds to the nearest dollar. So if line 10 is $165,003 that means your tax liability will be $8,908 for the year.