Taxes from An IRA for a Senior Citizen

The_G_Man
The_G_Man Member Posts: 1 Newcomer
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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: 15

    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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