Re: Traditional IRA Tax Withholding Percentage

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Traditional IRA Tax Withholding Percentage

What percentage of my traditional IRA distribution should I withhold for taxes when I'm currently in a 21% tax bracket? I heard 15% for both NJ State Tax and Federal.

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Neither. Take what you paid in federal or state taxes last year and divide that by your adjusted gross income (assuming it will be about the same this year - if it isn't, all bets are off). It will be less than 21%.

A more complete answer will basically require you to work out your complete tax return in advance taking into account social security, and any other income you may have.

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