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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29800
Experience:  Taxes, Immigration, Labor Relations
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If you take out $50,000 out of a tax sheltered annuity and

Customer Question

If you take out $50,000 out of a tax sheltered annuity and you are in a 25% tax bracket, how much would the tax burden be?
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.
First of all - on such distribution - you will receive reporting form 1099Rwhich reports total distribution (box 1) and taxable portion of distribution (box 2a)
Expert:  Lev replied 1 year ago.
Your will be taxes on TOTAL your taxable income, filing status, etc.As you are in 25% tax bracket - your federal income tax liability would be $12,500However if you are pushed to higher tax bracket - a part of distribution might be taxed at 28% rate.In additional - depending on your age - you might be subject to additional 10% tax on early distribution..I appreciate if you take a moment to rate the answer.Experts are ONLY credited when answers are rated positively.If you still have any doubts, need clarification - please be sure to ask.I am here to help you with all tax related issues.25 Apr 2016, 12:08 PM