gayl
Thinks s/he gets paid by the post
Yeah. I'm not that smart.
And unwilling to make an effort to learn a relatively simple concept?Yeah. I'm not that smart.
sarcasmAnd unwilling to make an effort to learn a relatively simple concept?
OK then. I'll remember not to waste any more of my time on this.sarcasm
We are all different & should have financial plans suited to our needs not some cookie cutter / computer program driven model
How does anyone know if it'll put me at the highest marginal rate?
no. When you withdraw from an TIRA, all the withdraw is taxable as normal income with the exception if the TIRA as a positive tax basis. Since the capital gains occurred in the TIRA which is tax deferred, it does not come out with the capital gains benefit.Question please:
Even if in high tax bracket, would taxes on RMDs be 15% because of cap gains?
No, it's taxed as ordinary income. It's not considered a capital gain.Question please:
Even if in high tax bracket, would taxes on RMDs be 15% because of cap gains?
Note that the additional rate only holds for 9 k if single and 12k if married. Beyond 34,000 or 44k if married it drops down to the regular rate.I’m a broken record, but here I go again!
When you take your MRDs, look at the 25% federal bracket and take all that you can up to, but never over that amount. Having the extra cash on hand when a big bill comes along later can save you a lot!
The 25% Federal bracket with the 85% taxability of your SSB creates a marginal rate of 46.25% and if you are pushing dividend income over that limit the initial marginal rate is actually 55.5%. A marginal rate is how much your taxes go up because you take another dollar out of your IRA, it is not the same as your tax bracket, that bracket is only one part of the marginal rate.
Note that the additional rate only holds for 9 k if single and 12k if married. Beyond 34,000 or 44k if married it drops down to the regular rate.
I’m a broken record, but here I go again!
When you take your MRDs, look at the 25% federal bracket and take all that you can up to, but never over that amount. Having the extra cash on hand when a big bill comes along later can save you a lot!
The 25% Federal bracket with the 85% taxability of your SSB creates a marginal rate of 46.25% and if you are pushing dividend income over that limit the initial marginal rate is actually 55.5%. A marginal rate is how much your taxes go up because you take another dollar out of your IRA, it is not the same as your tax bracket, that bracket is only one part of the marginal rate.
I’m a broken record, but here I go again!
When you take your MRDs, look at the 25% federal bracket and take all that you can up to, but never over that amount. Having the extra cash on hand when a big bill comes along later can save you a lot!
The 25% Federal bracket with the 85% taxability of your SSB creates a marginal rate of 46.25% and if you are pushing dividend income over that limit the initial marginal rate is actually 55.5%. A marginal rate is how much your taxes go up because you take another dollar out of your IRA, it is not the same as your tax bracket, that bracket is only one part of the marginal rate.
Total Income ? $175,100
Total Deductions ? $15,100
Total Exemptions ? $8,100
Taxable Income ? $151,900
Regular Taxes ? $29,518
Alt. Minimum Tax ? 0
Additional Taxes ? 0
Tax Credits ? 0
Tax Payments ? 0
You Owe ? $29,518
Marginal Tax Rate ? 25%
Total Income ? $185,100
Total Deductions ? $15,100
Total Exemptions ? $8,100
Taxable Income ? $161,900
Regular Taxes ? $32,318
Alt. Minimum Tax ? 0
Additional Taxes ? 0
Tax Credits ? 0
Tax Payments ? 0
You Owe ? $32,318
Marginal Tax Rate ? 28%
Quote:
Total Income ? $175,100
Total Deductions ? $15,100
Total Exemptions ? $8,100
Taxable Income ? $151,900
Regular Taxes ? $29,518
Alt. Minimum Tax ? 0
Additional Taxes ? 0
Tax Credits ? 0
Tax Payments ? 0
You Owe ? $29,518
Marginal Tax Rate ? 25%
Quote:
Total Income ? $185,100
Total Deductions ? $15,100
Total Exemptions ? $8,100
Taxable Income ? $161,900
Regular Taxes ? $32,318
Alt. Minimum Tax ? 0
Additional Taxes ? 0
Tax Credits ? 0
Tax Payments ? 0
You Owe ? $32,318
Marginal Tax Rate ? 28%