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How much in taxes will I pay?
Old 12-26-2002, 04:03 PM   #1
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How much in taxes will I pay?

I'm a Florida resident (no state income tax). I'm going to retire in a year. If I withdraw $120,000 per year from a traditional IRA, have a 30 year $305,000 mortgage at 5 3/4% (RE taxes about $3800), no other writeoffs, and am married filing jointly, how much do I pay Uncle Sam? Tax experts?

Thanks,
Buzz
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Re: How much in taxes will I pay?
Old 12-27-2002, 02:58 AM   #2
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Re: How much in taxes will I pay?

I don't have the answer as my brain is frazzled
working out my own tax strategies. Is your situation really that simple? If so, I envy you.
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Re: How much in taxes will I pay?
Old 12-28-2002, 05:30 PM   #3
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Re: How much in taxes will I pay?

Be sure to look at http://www.i-orp.com/ for minimizing taxes in retirement...

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Re: How much in taxes will I pay?
Old 07-03-2006, 11:25 PM   #4
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Re: How much in taxes will I pay?

Buzz, I think that is great question. Unfortunately, not too many people interested in the topic. Tax liability in retirment is obviously an important. Bob Clatt, the author of Work Less/Live More used a genral figure of 3% for federal and state. Guess you would be less since no state tax.
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Re: How much in taxes will I pay?
Old 07-03-2006, 11:50 PM   #5
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Re: How much in taxes will I pay?

Buzz,

If you use TurboTax or one of the similar programs to do your taxes, just use the 2005 edition and plug in your retirement scenario for a good approximation. If you don't do your own taxes, I'm sure whoever did them for you will be glad to do a pro-forma estimate for a minimal fee since it will only take a few minutes.

In either case, the 3% figure mentioned in one of the other replies is too low. Your $120k annual IRA withdrawal, net of mortgage interest and property tax deductions, will be taxed as ordinary income.
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Re: How much in taxes will I pay?
Old 07-04-2006, 12:16 AM   #6
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Re: How much in taxes will I pay?

Ummmm,
Did you guys notice that the thread you are answering is from 2002? It is very unlikely the OP has checked this thread recently. I admire your desire to address a poster's questions but perhaps a new thread would be in order to better discuss this topic with more current members.

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Re: How much in taxes will I pay?
Old 07-04-2006, 05:27 AM   #7
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Re: How much in taxes will I pay?

Quote:
Originally Posted by SteveR
Ummmm,
Did you guys notice that the thread you are answering is from 2002?*
One of the first things to go away in retirement is a sense of urgency...
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Re: How much in taxes will I pay?
Old 07-04-2006, 07:40 AM   #8
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Re: How much in taxes will I pay?

I wonder how Buzz is doing and if $120,000 fit a 4% SWR.
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Re: How much in taxes will I pay?
Old 07-04-2006, 08:08 AM   #9
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Re: How much in taxes will I pay?

Single

60% of income now coming from trad IRA with RMD in 7 years.

My my - how time flys.

heh heh heh heh heh - it was more fun when I was a 'cheap bastard' the first 10-12 yrs with a modest pension and dividends. Oh well - time to pay the piper.
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Re: How much in taxes will I pay?
Old 07-04-2006, 08:28 AM   #10
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Re: How much in taxes will I pay?

Quote:
Originally Posted by Martha
I wonder how Buzz is doing and if $120,000 fit a 4% SWR.*
Buzz got discouraged, waiting 3 and a half years for an answer to his question, and gave up his dream of early retirement.

The last I heard, he is working in Tampa Bay as a Tax Attorney.


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Re: How much in taxes will I pay?
Old 07-04-2006, 09:36 AM   #11
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Re: How much in taxes will I pay?

Let's suppose Buzz's question is current, the federal tax rate would be 25%.
http://finance.yahoo.com/taxes/rates
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Re: How much in taxes will I pay?
Old 07-04-2006, 10:11 AM   #12
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Re: How much in taxes will I pay?

If he's withdrawing 120k a year and living in a half million dollar house, buzz can go hire a tax attorney!

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