Social Security’s Tax Torpedo: How a Single IRA Withdrawal Can Trigger an Unexpected 22% Marginal Rate
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The post Social Security’s Tax Torpedo: How a Single IRA Withdrawal Can Trigger an Unexpected 22% Marginal Rate appeared first on 24/7 Wall St..
A single retiree in her late 60s draws roughly $30,000 a year from Social Security, has $720,000 sitting in a traditional IRA, and decides the bathroom needs renovation. She pulls $40,000 in one go to pay the contractor. She has been told her Social Security is tax-free, and on her last return it was. So she expects to owe income tax on the IRA mo
A single retiree in her late 60s draws roughly $30,000 a year from Social Security, has $720,000 sitting in a traditional IRA, and decides the bathroom needs renovation. She pulls $40,000 in one go to pay the contractor. She has been told her Social Security is tax-free, and on her last return it was. So she expects to owe income tax on the IRA mo
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