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I plan to keep working while drawing social security. How much tax if i withdraw my roth and 401k?

Oct 08, 2016 by mike in  |  Flag
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I would need more information to adequately answer that question. It really depends on what your top tax bracket is. For the Roth distributions, you won't have any taxes due, but the 401(k) will be added to your taxable income if it is a non-Roth 401(k). So every dollar you pull out of your 401(k) will be taxed at your top tax bracket. To give you an idea of the tax brackets, here is a link from the IRS on tax brackets.

http://taxfoundation.org/article/2016-tax-brackets

Please remember, this does not factor in state taxes if you live in a state that has an income tax.

Comment   |  Flag   |  Oct 08, 2016 from Palm Harbor, FL

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Roth IRAs are not taxed at all (as long as you are over 59 1/2 yrs old & have had the account open for more than 5 years.

Withdrawals from your 401(k) will be taxed at the same rate as ordinary income tax (no penalties as long as you are over 59 1/2).

Here is some basic info to help you get started for your social security taxation. Your age also matters quite a bit as taxation differs as you get closer to "full retirement age":

Married filing jointly $32,000 –$44,000 Up to 50%

$44,000 Up to 85%

Individual $25,000 –$34,000 Up to 50%

$34,000Up to 85%

Full retirement age and older • Full benefit, no matter how much is earned • If you worked while receiving Social Security, benefits increase at full retirement age to account for amounts withheld

In the year you reach full retirement age • Earn up to $45,360/year — receive full benefit • Earn over $45,360 /year — benefit reduced $1 for each additional $3 earned

Between age 62 and full retirement age • Earn up to $17,040/year — receive full benefit • Earn over $ 17,040/year — benefit reduced $1 for each additional $2 earned

Comment   |  Flag   |  Jul 26, 2018

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