I would like to withdraw 179, 000 rom a traditional IRA and I earn $50.000 annually What taxes am I looking at to repay?I would like to pay off my 206,000 mortgage.

Forum|Forum|11 months ago
April 9, 2025
2 replies
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TurboTax Online

MinhT1

The IRA withdrawal will be taxable and will add to your taxable income. Also, if you are aged under 59 1/2 at the time of withdrawal, you have to pay an early withdrawal penalty of 10%.

Assuming that you are single, the tax brackets for 2025 show that this amount of $179,000 would add about $50k of taxes to your return. If you are under 59 1/2, add another $17.9k.

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smellychellybellAuthor

Thanks for the response. What if I file jointly with my retired spouse who gets 20,000 annually? Will that bring the tax rate down.? There will be no 10% penalty because I an over 59 1/2.

Opus 17

The tricky thing is that a large lump sum of income will also make your social security more taxable than it might be otherwise. Try using the TaxCaster, even though it is set up for the 2024 laws and brackets, 2025 will probably be similar.

TaxCaster tax calculator