Is there a way to estimate the IRS impact if I use some of my 401K to supplement my social security income?

My SS payments do not cover expenses in this inflated economy so need to supplement income with retirement savings but need to know how adjust tax withholding to prevent huge bill at end of year.

671

Level 15

Oct 6, 2023 9:41:45 AM

Use the TurboTax calculator TaxCaster to get an estimate of taxes owed - https://turbotax.intuit.com/tax-tools/calculators/taxcaster/

Level 15

Oct 6, 2023 10:03:15 AM

Your 401k custodian will probably require a minimum percent withheld for taxes.

You should find out what that is.

@haven551

Level 15

Oct 6, 2023 10:31:36 AM

@haven551 use this calculator; the problem with Taxcaster is it is still set to 2022 rules and that will overstate the actual tax you would expect.

https://www.dinkytown.net/java/1040-tax-calculator.html

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Is there a way to estimate the IRS impact if I use some of my 401K to supplement my social security income?