topic SIMPLE IRA ON WITHDRAWLS? early withdraw total for both 93,025.37 paid already 16,630.56 but still have more to pay 9303. why so much more in Retirement tax questions

SIMPLE IRA ON WITHDRAWLS? early withdraw total for both 93,025.37 paid already 16,630.56 but still have more to pay 9303. why so much more

mariewinchester — Tue, 04 Jun 2019 01:34:09 GMT

Early withdrawals are taxed at the tax rate for the brack...

Lisa995 — Tue, 04 Jun 2019 01:34:11 GMT

Early withdrawals are taxed at the tax rate for the bracket your total income lands in...as well as a 10% penalty for early withdrawal. Its quite common for the withholdings on a early retirement distribution to create a larger tax liability then the withholdings will cover.

That is the 10% Early Withdrawal Penalty. It has to brea...

VolvoGirl — Tue, 04 Jun 2019 01:34:16 GMT

That is the 10% Early Withdrawal Penalty. It has to break out and show the 10% penalty separately on your return on line 59 and then you get credit for all the withholding taken out on Line 64.

Approximately 20% was withheld to pay the tax. If you...

macuser_22 — Tue, 04 Jun 2019 01:34:17 GMT

Approximately 20% was withheld to pay the tax. If you are in the 20% percent marginal tax bracket, that would pay the tax. Then the additional 10% ($9,303) penalty must be added on. Probably you should have had 30% withheld for tax.