401K in 72nd year

[Cyndichanou]

I have a small amount (~$7,000) in my 401K from my last 3 years of teaching.  Because I turned 72 in August I have been informed that I must take distributions beginning Nov. 10. Because Social Security has determined that they overpaid me (I have a small Greek pension) and stopped all payment in March, I have very little income this year ($800/month from my investments), so $9,600 for the year.  My question is, can I just deposit the $7,000 from my 401K in my bank account?  How much tax will I pay?

[VincentL12345 · Accepted solution]

You will need to total your income and subtract your standard deduction from this amount. Since you did not provide your filing status. This will be your estimated taxable income. Find your tax bracket below and multiple the percentage to calculate your estimated tax due.

The 2023 standard deduction is $13,850 for single filers and those married filing separately, $27,700 for those married filing jointly, and $20,800 for heads of household.

Filing status	2023 standard deduction
Single	$13,850.
Married, filing separately	$13,850.
Married, filing jointly; qualified widow/er	$27,700.
Head of household	$20,800.

Additional standard deduction

People who are 65 or older and those who are considered blind by IRS definition are entitled to an additional standard deduction amount that they may add to their existing base standard deduction. How much extra depends on filing status and which conditions are applicable.

Additional standard deduction 2023

Single or head of household
65 or older or blind.	+ $1,850.
65 or older and blind.	+ $3,700.
Married filing jointly or married filing separately
65 or older or blind.	+ $1,500 (per qualifying individual).
65 or older and blind.	+ $3,000 (per qualifying individual).

2023 Tax Brackets and Rates

Tax Rate	For Single Filers	For Married Individuals Filing Joint Returns
10%	$0 to $11,000	$0 to $22,000
12%	$11,000 to $44,725	$22,000 to $89,450

[Cyndichanou]

So since I am married filing jointly I won't pay tax if my income is under $27,700?  So I can just put the $7,000 in the bank?