Question

Tax on IRA withdrawls

Forum|Forum|5 years ago
August 18, 2020
4 replies
0 views

I just retired. How do I know how much to withhold out of my Schwab IRA for federal taxes. I live in Texas , so there is no state income tax . Thanks.

Critter-3

https://www.irs.gov/individuals/tax-withholding-estimator

SteamTrain

Employee

....or try TTX's Taxcaster tool. It uses 2019 rates, but should be close enough:

https://turbotax.intuit.com/tax-tools/calculators/taxcaster/

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

O

Opus 17

Employee

In the simplest case, if you are single and withdraw $25,000 or less from the IRA, then your social security is tax-free and you will pay about 6% federal income tax on the IRA. (No tax on the standard deduction of $12,500, then 10% on the next $9000, then 12% on the last $6000.)

However, if you are married, or have other income, or withdraw more than $25,000, then your tax on the IRA goes up and you also start to pay tax on your social security. So you really need to use one of the online calculators.

B

Bees

Employee

This is an excellent calculator to play around with

https://www.mortgagecalculator.org/calcs/1040-calculator.php

Edited the link to show the full 1040 calculator instead of 1040ez

Disclaimer: Not a tax professional. Information gathered from internet links. Anything dated in June 2019 was posted in prior years and is before the 2019 limits and changes.