401k

Forum|Forum|2 years ago
January 24, 2024
1 reply
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In 2024 the standard deduction will be $14,600 for single filers, I will be 62 this year. If I withdrawal $14,600 from my 401k, will the distribution be offset by the standard deduction making my AGI $0?

Best answer by MinhT1

Yes, if you have no other income in 2024, the standard deduction will reduce your taxable income to 0.

Your AGI will be $14,600, but your taxable income will be 0.

MinhT1Answer

Yes, if you have no other income in 2024, the standard deduction will reduce your taxable income to 0.

Your AGI will be $14,600, but your taxable income will be 0.

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basshunter58Author

The only other income I will have would be social security. I will not be receiving my first payment until April, so I don't know what the total amount for the year will be at this point.

Vanessa A

If you will also have social security, then you would end up having taxable income. At minimum half of your social security will be taxable since you would have other taxable income. Depending on your situation, up to 85% of it is taxed.

For instance, if you are single and if your withdrawal is $14,600 and you receive $15,000 in social security for the year, then you would have combined income of $22,100. Which would leave you with taxable income of $7,500.

If you fall into the following, 85% of your social security is taxable income