If I withdrew 100k from a traditional ira, would this automatically require a tax of 30% federal and 20% to the state to be paid? Or would my overall taxes to be paid be determined by the AGI? I have a lot of deductions through my sch e and sch f, but wanted to know if my tax rate for the early disturbution could be lowered or I automatically have to the 50% in taxes? Thanks.
Tax Rate of IRA distributions
- Thread starter Pagosa
- Start date
npaden
Well-known member
Would depend on the state, but for federal it would be based on your income. The IRA distribution would be taxed as ordinary income. There is an extra 10% penalty though if you are not at retirement age.
LopeHunter
Well-known member
Was the withdrawal part of a planned distribution or was the withdrawal done early? If was done early, unless you meet certain qualifications then a penalty is assessed. You do have a certain amount of time to replace the funds in order to not trigger the penalties.
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