taxable amount

Forum|Forum|2 years ago
July 26, 2023
2 replies
7 views

In 4 years, age 66/10, my retirement is $3,100 to total $37,200 a year. Assumption: 15,000 withdrawn from 401k, to total $52,200 a year, $8,200 above the $44,000 threshold for couples and hence taxed 85% of my tax income.

does it mean my taxable amount is $37,200*.85 + $15,000 = $46,620? is that $37,200*.15 = $5,580 excluded from my taxable income?

is there a similar consideration for IRA, 401k retirement plans?

Ask the Experts - Retirement - July 2023

HirschCPA

Level 2

From the description it looks like you are asking abut how much of your social security income will be taxed. This link will give you a little more detail regarding how your social security is taxed (https://www.ssa.gov/benefits/retirement/planner/taxes.html)

Regarding your IRA or 401K, this depends on a couple items:

- For an IRA or 401K, there is no "split" like on Social Security.

- Is it a Roth IRA / 401K?

- Is there a cost basis (sometimes people contribute to an IRA and it is not deductible. You would have filled out a Form 8606 on your tax return).

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rschule1

Level 6

Hi There:

Turbo Tax has a great App called TaxCaster which can assist with such calculations. Simply go online to TaxCaster and enter information as needed.

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