I am attempting to determine how much Income tax
would be due if I withdrew funds from my inherited
Fidelity Traditional IRA
that I received upon my spouse’s Death in February 2008.
Here are the basic facts which are followed by the breakdown:
I am 66 years old, retired and receive a monthly income of :
$1776.00 from l Social Security Benefits
of $1776.00/month and Medicare
b of $99.00 is deducted from this, I began receiving this amount effective March 2012, and received $1442.o/month in January and February 2012. $1052.0 0 Federal retirement
FERS)and $ 187.18 is deducted for Medigap coverage, and $584.28 minus $5.84 taxes monthly plus less than 4100/year interest
M y house taxes are approximately $5200.00/yearand I acquired another property
and paid back taxes of $6185.00 for 2010 and 2011, which generally average 2400.00 year.
2012 Income 2012 Deductions
Social Security payments: $20,644.00 Medicare payments $ 1188.00
FERS retirement $12,624.00 Medicare Supplement $ 2246.16
InterTek survivor benefits $ 7,011.36 Income tax $ 106.08
2012 Income Totals $40,279.36 Real Estate taxes
$ 5500.00 my home
Acquired by 2010, 2011 Back taxes paid $ 6100.00 Real Estate Property
2012 taxes due for same acquired property $ 2400.00 Medical
Bills paid $ 2900.00
Although there is no house mortgage, my usband died intestate and the associated probate and attorney expenses were very high and required all of my savings plus a loan.
My tax preparer
suggested I take out a mortgage o my house, which was already mine with no mortgage payment, just taxes and insurance, and advised me not to work for more than $14,000. In wages for 2012 because of social Security and taxes. I do not want a mortgage.
I would like to withdraw $20,000 from the inherited Fideity Traditional IRA and want to know how is this going to affect my Social Security benefits – for example, am I going to be paying them $1.00 for every $2.00 over the $34,000. I am supposed to be able to earn with no paybacks? I am definitely going to withdraw $14,000.00 and would like to know how will my taxes be affected in both withdrawal cases?