Have a Tax Question? Ask a Tax Expert
If the IRA is a Traditional IRA, you will be taxed on the amount that comes out. There is no special rate of tax, the distribution will be taxed at regular rate of tax.
At single, standard deduction, no dependents, the tax would be estimated at $10,718
You can have the taxes withheld or pay when you file your return.
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The pension was not taxed when you made contributions. The rollover was not taxed.
There is no penalty but the tax will apply on the distribution. That is why these are called deferred accounts.
The tax is deferred until distribution.
If teh interest on the debts are less than the tax you will pay it is not a bad idea.
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