Taxes from An IRA for a Senior Citizen

The_G_Man
The_G_Man Member Posts: 1 Newcomer
edited December 2024 in Retirement Income

I am recently retired. I receive Annually approximately $23,000 in Social Security, and a Small Pension of approximately $12,000. I want to take money from an IRA account that I set up after transferring funds from my 401k plan. I am single and plan to take the Standard Deduction Exemption on my taxes. What is the maximum that I can take out from my IRA to stay within the 12% Tax Bracket for Seniors. Also, next year I have an Annuity that will kick in that will pay me substantially more than I am currently earning, so I want to Maximize what I withdraw this year to take advantage of my Lower Tax Bracket.

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Answers

  • KennethH
    KennethH FreeTaxUSA Agent Posts: 16

    Hi,

    If you are single and 64 or under at the end of 2024, your standard deduction would be $14600. To stay in the 12% bracket, your gross income cannot exceed $61750. Included in that $61750 would be $19550 for your social security (maximum 85% of social security). With the $12000 pension, that would leave you with $30200 you can take from your IRA and stay in the 12% bracket.

    If you are 65 or over at the end of 2024, you could add another $1950 to compensate for the increase in standard deduction for 65 or over.

    If you have additional questions, please let us know.

    Thank you.

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  • JMSSGV
    JMSSGV Member Posts: 77 Level 5

    "What is the maximum that I can take out from my IRA to stay within the 12% Tax Bracket for Seniors."

    Just to clarify, there is no special tax bracket for seniors. All ordinary income is taxed at the same rates for all taxpayers, based on their filing status (Single, Married Filed Jointly, Married Filing Separately, Qualified Surviving Spouse or Head of Household.)

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