Reply
Newbie

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. 

0 Kudos
626 Views
1
Report
Trusted Contributor

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.

0
Kudos
3980
Views
0 Kudos
558 Views
0
Report
cancel
Showing results for 
Show  only  | Search instead for 
Did you mean: 
Users
Need to Know

"I downloaded AARP Perks to assist in staying connected and never missing out on a discount!" -LeeshaD341679

AARP Perks

More From AARP