This is the first year that DH and I have had 1) full SS and 2) a large amount of IRA withdrawals. I just did the taxes with Turbo-tax, and we have a $6000 tax bill. This is because our monthly W/Ds from Fidelity only withhold 10%. This was my bone-headed mistake, but as I said, this is the first year where we really dipped into IRA money.
Going forward, and keeping it as simple as possible (I have been reading other threads about how others do this), would I be safe in setting the IRA withdrawal withholding rate (via Fidelity) to our tax bracket rate, which is 22% [low end, about $98000] ?
This would assume that our total W/Ds would be about the same, and that taxes did not increase too much.
Apologies in advance, as I am not as knowledgeable as many are here.
Going forward, and keeping it as simple as possible (I have been reading other threads about how others do this), would I be safe in setting the IRA withdrawal withholding rate (via Fidelity) to our tax bracket rate, which is 22% [low end, about $98000] ?
This would assume that our total W/Ds would be about the same, and that taxes did not increase too much.
Apologies in advance, as I am not as knowledgeable as many are here.