Retirement savings

Forum|Forum|4 years ago
March 10, 2022
1 reply
18 views

I am 67. I withdrew 30k and later 35k from my before tax retirement savings, both in 2021. I put away 10 % of one and had 10% withheld on the other for taxes. My only income is social security. What tax rate % would apply to me in this situation. This has taken me from about $22000.00 income to $85000.00 income this year. I knew I would be paying for my decision, but running the numbers on Turbo Tax the amount is coming up quit a bit higher than I expected. Any suggestions on what I could be doing wrong?

ErnieS0

Level 15

You are probably paying a higher than expected tax because more of your social security is being taxed.

If your income is between between $25,000 and $34,000, you may have to pay income tax on up to 50% of your benefits. If you income is more than $34,000, up to 85 percent of your benefits may be taxable.

If you had $20,000 is social security and $65,000 in retirement withdrawals, you are in the 22% tax bracket.

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