Hello again jackie,
Thank you for the additional information.
Assuming that your income and your deductions
will stay around the same as they were last year, this means that your top tax bracket will remain at 25%. Whatever you withdraw from your IRA account you will have to figure as being taxed in that top bracket, as this is just extra income that will be added on to the top of the other income
you already have for the year.
For the 2009 tax year, if once again you end up with regular taxable income of $50,354, this will mean that you can have up to an additional $31,896 in income and still remain in the 25% tax bracket. So any IRA withdrawal you take up to the amount of $31,896 would be taxed at the rate
of 25% for federal tax. If you exceed that amount and withdraw additional money, the additional money then falls in to the next highest bracket of 28%.
Also, you will need to pay NY state
tax on your IRA withdrawal, and that will be at the rate of 6.85% on any withdrawal that you make from the IRA account.
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Thank you jackie and let me know if you have more questions.