Have a Tax Question? Ask a Tax Expert
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.
Are you going to take a loan out of your deferred comp account, and then a withdrawal from your IRA?
You would not be charged the 10% early withdrawal penalty, but you would be charged income tax at your ordinary tax rate.
How much tax you are charged depends on your other income.
I need further clarification ... are you taking a loan out on your deferred comp account or are you withdrawing funds from your deferred comp account?
I am talking about a loan on my deferred comp for 10k and a withdraw from my IRA with the specific purpose of putting a downpayment on a primary residence. my income presently is about 70k (30k is retirement pension)
the loan is not taxed
Your $8,000 withdrawal would be taxed at your ordinary tax rate
my deferred comp plan allows for 10 k to be loaned specifically for downpayment on home with a 30 year payback time
Are you married or single and do you have any children?
single no dependents/adult son
With your income you are in the 25% tax bracket
the tax on your IRA withdrawal would be $2,000 which is 25% of $8,000
it says 'awaiting customer action' but now sure what else you need?
I said that the additional tax on the IRA withdrawal is $2,000
got is 25% tax bracket. This screen is very hard to follow the answer. is the interest on the loan and taxes deductible?
If you itemize your mortgage interest is tax deductible
but you would need more than $12,200 to make it worthwhile to itemize
are you done?
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