Hello ... thanks in advance for any advice.
I'm 64 y/o, still working as a freelance/contractor. My work has slowed in the past few months. I'm planning to pay myself this coming month with a withdrawal from my traditional, taxable IRA. I'm thinking this would be a good time as the stock market is up - I would be withdrawing gains. My goal is to deposit $2100 in my checking account to live on in August. How much should the tIRA withdrawal be to account for taxes? In my business, I have been setting aside 1/3 of my income for taxes. Just wondering if I should do the same thing with an IRA withdrawal. So, I would withdraw $3200, set aside $1056 for my next estimated tax payment, and deposit $2112 in my checking account. My state has a flat 4.4% tax rate. I know this calculation is probably conservative - meaning more set aside for taxes than necessary. I"m in the 12% tax bracket. I'm planning to withdraw funds from my tIRA as needed through the end of the year - so that my MAGI is about $30k which is what I estimated for ACA purposes. I earned $22,519 net before work kind of came to a screeching halt.
I'm 64 y/o, still working as a freelance/contractor. My work has slowed in the past few months. I'm planning to pay myself this coming month with a withdrawal from my traditional, taxable IRA. I'm thinking this would be a good time as the stock market is up - I would be withdrawing gains. My goal is to deposit $2100 in my checking account to live on in August. How much should the tIRA withdrawal be to account for taxes? In my business, I have been setting aside 1/3 of my income for taxes. Just wondering if I should do the same thing with an IRA withdrawal. So, I would withdraw $3200, set aside $1056 for my next estimated tax payment, and deposit $2112 in my checking account. My state has a flat 4.4% tax rate. I know this calculation is probably conservative - meaning more set aside for taxes than necessary. I"m in the 12% tax bracket. I'm planning to withdraw funds from my tIRA as needed through the end of the year - so that my MAGI is about $30k which is what I estimated for ACA purposes. I earned $22,519 net before work kind of came to a screeching halt.
Statistics: Posted by 2BRetiredsn — Sat Jul 20, 2024 7:30 am