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I inherited an Inheritted IRA i have to take money out every year. What would be my taxes if I took 50k. I make 47k a year

 
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I inherited an Inheritted IRA i have to take money out every year. What would be my taxes if I took 50k. I make 47k a year

The withdrawal is taxed at your marginal tax rate. Don’t forget your state tax if applicable. 

I inherited an Inheritted IRA i have to take money out every year. What would be my taxes if I took 50k. I make 47k a year

For federal tax it could be anywhere between 0% and 22%, depending on your income, filing status (married, single, head of household) and dependents.  Your situation is unique to you and we can't guess.  This IRS calculator may help.

https://www.irs.gov/individuals/tax-withholding-estimator

 

Note that if you usually qualify for EIC, this will disqualify you.

 

State taxes can be anywhere from 3%-10%, depending on what state you live in, and your filing status and dependents.  

I inherited an Inheritted IRA i have to take money out every year. What would be my taxes if I took 50k. I make 47k a year

When you are subject to the 10-year liquidation rule for newly inherited IRAs,
to spread the tax impact most evenly over the ten years, and regardless of the Year-End Value,
your divisor should be :10,9,8 . . . 2, 1
OR,    11 - N where N is the number of the distribution year. (Beneficiary RMDs start in the year after the year of death)

If the owner died in 2020, the beneficiary would have to fully distribute the plan by December 31, 2030. which is the tenth distribution year.
the portion to distribute is 1 / 1 or 100%.

In the eighth year you would take out one third of the IRA, there being three years to go.
If you are a young beneficiary, or even not so young, this rule would generate much larger distributions than the RMD based on Pub590B formulas.

At a very great age, the Pub590B formula will overtake this calculation and require a larger RMD in the beginning.


NOTE: if you are a senior and this approach triggers IRMAA right away, you may want a different approach

OTHERWISE, if the owner had not reached age 73,
Take any amounts you wish at any time, that is your choice,
OR
take it all in a lump sum at the end of ten years.

 

@janesimms1130 

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