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Ed Johnson
Ed Johnson, Tax Preparer
Category: Tax
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Experience:  GPHR Cert; U.S. Treasury Tax Advocacy Panel appointee
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Again, what will the amount or % on the IRA (249,333) be

Customer Question

Again, what will the amount or % on the IRA (249,333) be?
Submitted: 8 years ago.
Category: Tax
Expert:  Ed Johnson replied 8 years ago.

Dear Jperkins,


I have looked at those other posts of yours.


AND the distributions are taxed at your maringal rate.


If yiou inherit the IRA there are no taxes on it, unless you take a lump sum distribution.


so the taxes on an a traditional IRA inherited or not are:


1. For regular distributions: at your marginal rate wich can be anywhere between 10 and 35 percent. The distributions you draw out are added to your adjusted gross income and then taxed at the level indicated for that adjusted gross income, that is shown in the tax tables.


2. If you take it out in lump sum, at the amount you indicate it will be 35%.


3. If you take an early distribution, that is, you are not retirement age, then you may have to pay an additional 10% penalty.