topic What is the formula to calculate how much can be withdrawn from traditional IRA so that SS is not taxed in Get your taxes done using TurboTax

What is the formula to calculate how much can be withdrawn from traditional IRA so that SS is not taxed

reallydisgusted2 — Wed, 16 Nov 2022 17:03:50 GMT

Re: What is the formula to calculate how much can be withdrawn from traditional IRA so that SS is not taxed

mikafeed58 — Wed, 16 Nov 2022 17:45:22 GMT

While IRA Distributions do not directly affect your Social Security Benefits, they do add to your total Income which does affect how much of your Social Security Benefits will be taxed. Depending on your Filing Status, there are income thresholds ($25,000 for Single, $32,00 for MFJ), 50% of your benefit will be subject to tax. After reaching $34,000 (Single) or $44,000 (MFJ) 85% of your benefit will be taxed at your ordinary rate. Please visit this link from the Social Security Administration for more information: https://www.ssa.gov/pressoffice/factsplanner.htm

Re: What is the formula to calculate how much can be withdrawn from traditional IRA so that SS is not taxed

TimS5 — Wed, 16 Nov 2022 17:45:26 GMT

Determining when your social security becomes taxable is based your combined income. Therefore, once your income level exceeds the floor amount, your Social Security starts to be taxed. So for example, as a single person, the threshold floor is $25,000 of combined income. Combined income for this purpose is defined as your adjusted gross income + nontaxable interest + 1/2 of your Social Security Benefits. As your combined income increases over the floor amount, the greater the percentage of you social security will become taxable. For a single person, at $34,000, 85% of you social security benefit will be taxable. For more information, please go to https://www.ssa.gov/benefits/retirement/planner/taxes.html

To determine the the actual effects on your withdrawal, please use the TurboTax Estimator, you will be able to see how the withdrawal will effect your taxes.