Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.
Thank you for your question. You redeemed $130,000 from your IRA. If you are under age 59.5 you will first pay a 10% penalty that is not refundable. You owe $130,000 for this off the bat. If you are over 59.5 you will NOT owe this penalty.
The full $130,000 will also be subject to income
tax. You will pay tax at your marginal rate
, which depends on your filing
status, and your income. I am assuming that you are married filing joint and the only other income
you have is $51,000 per year. So, this year you have $181,000 in income. If I remove the standard deduction
and two exemptions, your taxable income
would be $161,500. This amount could be less if you have other deductions
or if you itemize your deductions.
Based on this, I calculate your tax to be $33,483.50 (for all your income, not just the IRA). You are in the 28% tax bracket at this point in time. If you are under 59.5 this is IN ADDITION TO the $13,000 penalty.
Your IRA custodian should withhold 20% for taxes plus the 10% penalty before giving you the rest. If they did that, then you will only have to pay in about $3,000 if you consider your other withholding
I sincerely hope this helps. Please let me know if you require further clarifications in this matter.
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