maximum ira withdrawal to avoid taxes

Forum|Forum|2 years ago
October 25, 2023
2 replies
33 views

i live in panama and am fully retired, living on land i own outright, using regular savings to cover the cost of living. i turn 60 soon. what is the maximum amount i can withdraw each year to not trigger taxes?

Ask the Experts - Extension - Sept 2023

JanD9

Alumni - Intuit

Congratulations on your retirement!

If you are withdrawing money from savings (not a retirement account), there is no set amount of withdrawals that will directly impact your tax liability. Any withdrawals from a 401(k) would be taxed at your ordinary income tax rate, based on the current IRS tax brackets.

Your taxable income can be projected by identifying your gross income (e.g. interest and dividends, withdrawals from retirement accounts) and then subtracting the standard deduction, which is currently $13,850 for a single filer under the age of 65.

Current tax brackets and standard deduction amounts can be found on the IRS website.

BarbL

Alumni - Intuit

A withdrawal from a traditional IRA that exceeds the standard deduction amounts mentioned by JanD9 will trigger tax. After subtracting the standard deduction, the next $11,000 in income is taxed at 10%.

A withdrawal from a Roth IRA is not taxable, as you paid tax on the money before you contributed it to the account.

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