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New Member
posted Jun 26, 2024 11:18:41 AM

Tax Brackets limitations for RMD withdrawals

How can I make sure I stay within the same tax bracket each year for RMD withdrawals?

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1 Replies
Employee Tax Expert
Jun 26, 2024 11:41:16 AM

The best way to stay in the same tax bracket is to first know where to find the current tax year's brackets and the 2023 tax brackets

 

Now that you have your tables, locate a copy of your 2023 tax return.  You will want to review Form 1040 and line 15 that says "This is your taxable income."

 

You can see from the tables you have some flexibility in staying within a tax bracket and also how to avoid some of the larger jumps.  For example, if in 2023 you filed as Married Filing Jointly and had taxable income of  $190, 751, you are in the 24% tax bracket for 2023.  Now toggle over to the 2024 table.  If in 2024 you plan to file as Married Filing Jointly, to stay in the 24% tax bracket, you can make as much as $201, 050 to $383,900.  However, if you make more than that, your tax bracket will jump to 32%.