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stsspence
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Incorrectly calculating the tax on early distribution for traditional IRA $30,000. The Federal Tax due amount shows $8,008. Results page states $2,949. What is the issue?

 
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SusanY1
Expert Alumni

Incorrectly calculating the tax on early distribution for traditional IRA $30,000. The Federal Tax due amount shows $8,008. Results page states $2,949. What is the issue?

It sounds like the "results" page is showing only the penalty amount, not the income tax amount.   The penalty amount of $2,949 would be correct on a distribution of $29,490. 

 

The $8,008 in tax sounds about right for someone with a total income over $84,201 (single) or $168,401 (joint).  The total income would include the premature IRA distribution. 

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1 Reply
SusanY1
Expert Alumni

Incorrectly calculating the tax on early distribution for traditional IRA $30,000. The Federal Tax due amount shows $8,008. Results page states $2,949. What is the issue?

It sounds like the "results" page is showing only the penalty amount, not the income tax amount.   The penalty amount of $2,949 would be correct on a distribution of $29,490. 

 

The $8,008 in tax sounds about right for someone with a total income over $84,201 (single) or $168,401 (joint).  The total income would include the premature IRA distribution. 

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