Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Jun 26, 2024 10:20:35 AM

How much can be withdrawn from simple IRA when only other income is Social Security without paying taxes?

How much can be withdrawn from simple IRA when only other income is Social Security without paying taxes?

0 1 1286
1 Replies
Employee Tax Expert
Jun 26, 2024 10:37:03 AM

So, the concept here is "combined income".   Combined Income is your adjusted gross income plus nontaxable interest and half of your Social Security benefits for the year.

 

So the question of how much can be withdrawn from the 403(b) depends upon how much half your Social Security benefits are and then your filing status.   For example, let's say your yearly Social Security benefits are $25,000 and you are single.   You could distribute $12,499 from the 403(b) and none of your Social Security benefits would be considered income.   Since the $12,499 withdrawn from the 403(b) is below the standard deduction of $14,600 for filing as Single, without the additional amount for being 65 and older you would not pay any tax. 

 

All the best,


Marc 

Employee Tax Expert