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brettdotcom14
New Member

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

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
3 Replies
fanfare
Level 15

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

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.

brettdotcom14
New Member

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

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
Expert Alumni

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

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.  

 

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