How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Merlo Your Own Question
Merlo
Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
9573734
Type Your Tax Question Here...
Merlo is online now
A new question is answered every 9 seconds

I am taking money out of inherited IRA account. I have been

Customer Question

I am taking money out of inherited IRA account. I have been asked by the bank what precentage do I want to be taxed at on the money. I need help.
Submitted: 7 years ago.
Category: Tax
Expert:  Merlo replied 7 years ago.
Hello dana,

Your tax rate will be determined by your total income for the year, including this withdrawal, and also your filing status. So in order to answer your question I would need to know the following:

1. What will your total income be for the year including the amount you withdraw from the IRA?

2. Do you file your taxes as single or married?

Customer: replied 7 years ago.

Well with my job. I am a teacher. From January 1, 2009 - August 31, 2009. I was a salary employee getting paid $64,100.00 per year. Last Monday I started a new job at a pay rate of $57,000 per year. I have 181,000 in the ira account and need $100000.00 of the money

 

I am trying to figure out how much I should take out, so that the end amount will be 100000.00.

 

So I don't know how much my total income would be.

 

I know a little confusing

Expert:  Merlo replied 7 years ago.
Hi dana,

Can you also please tell me if you file your taxes as single or married?

If you are married, I would need an approximation of your spouse's income as well.

Customer: replied 7 years ago.
Sorry about that My filing status is single
Expert:  Merlo replied 7 years ago.
Hello again dana,

Thank you for the additional information.

With the income you have from your jobs this year and a withdrawal from the IRA of $100,000 or more, this will make the average federal tax rate on your IRA withdrawal 26%. You will also owe 4.75% in Maryland state taxes (I am assuming that is the state where you are a resident).

In order for you to actually net $100,000, you would need to withdraw approximately $145,000 from the IRA. They should then withhold federal tax of $37,700 and MD state tax of $6,887. This will then leave you with a net withdrawal of $100,413.

If this was helpful please press the Accept button. Positive feedback is also appreciated.

Thank you dana