How to Only Pay $1500 in Tax on a $45k IRA Distribution

The CARES Act is a HUGE opportunity. Do NOT OVERLOOK THIS!

[anthonyrichardson]

Josh-You included an extra $6000 on her taxable income you may want to double check your figures

[RetireWithLess]

Whiteboard calculations! My favorite! I can hear the squirrels running in Josh's brain!

[thepokerpilotapp]

Anthony is correct. Josh- you added an extra 6k of income into the AGI in the first example of 60k distribution.

[Rugrats]

I’m in the 22% tax bracket now and would be very happy if my tax bracket would be 10% let alone 5.9%.

[aikofujita]

How about no other income coming in? I live overseas on foreign spouses’ retirement. My 401k I would like to take distribution up to $100k with out tax or least tax. I am 60 years young.

[freddieh]

Darn, I hoped this would be useful info, but doesn't apply in my case. I have to start converting about $60k/yr from trad IRA to Roth. It works out to about 20% tax on the conversion amount, but it'll be even more painful if i wait 6 yrs til RMD hits.

[Candygram_for_Mongo]

I think it's worth mentioning that for this to be true, you have to take out $45, 000 in 2020 and $0 in 2021 and 2022.

[joesixpack]

...so for someone younger, maybe 54 (turned 55 this year) how does CARES affect distributions from 401K and/or IRA? I know the "IRS rule of 55" allows you to withdraw from 401K penalty free in the year you turn 55, but not sue if that 3 year "spreading" applies?

[unitedwestand]

I am actually looking at doing this now because I’ve been “negatively” affected by the coronavirus. I thought CARES ACT is only for 401k? Can I take it out of a Roth IRA and I wouldn’t pay any taxes OR penalty? We are looking at purchasing our first home and I know we can withdrawal $10k free of penalty’s for a first time home buyer but with the CARES ACT can I take out more? Thanks Josh 🇺🇸

[jruggle]

I enjoy your videos a lot! But I think the calculations you are using for tax on ss might be wrong. I could be wrong. Once you cross the income level of $25k but not over $34k, 50% of the ss income is subject to tax. Once you cross the $34k line, you pay tax on 85% of the ss income. It's not like tax on regular income where the first $25k is excluded. I make more than 34k and I know that exactly 85% of it is taxed.