Money out of an IRA
I have a beneficiary IRA I'm looking to take out a portion of to pay off my mortgage. I'm looking to find out how much I can take out and not jump tax brackets when I file next year. I will be married filing jointly. Our total income will be roughly $75,000
Quick Answer:
To determine how much you can withdraw without jumping into the next tax bracket, we look at the 2024 tax brackets for Married Filing Jointly.
With a total income of **$75,000**, you are currently in the **12% bracket**. For 2024, the 12% bracket ends at a taxable income of **$94,300**.
However, you must first account for the **Standard Deduction**. For 2024, the standard deduction for a married couple is **$29,200**.
**The Calculation:**
1. **Gross Income:** $75,000
2. **Minus Standard Deduction:** -$29,200
3. **Current Taxable Income:** $45,800
4. **Upper Limit of 12% Bracket:** $94,300
5. **Available "Space":** $94,300 - $45,800 = **$48,500**
You can withdraw approximately **$48,500** from your beneficiary IRA before the next dollar is taxed at the 22% rate.
**Important Notes:**
* Inherited IRA distributions are taxed as ordinary income.
* If your $75,000 income estimate is "Gross" (before deductions), the $48,500 figure applies. If $75,000 is already your "Taxable Income," your limit is only **$19,300**.
* This does not account for state taxes or potential impacts on credits/social security taxability.
Note: This answer is provided for convenience only. It is important that you speak to a CPA about your individual tax situation.
