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Taxes On Normal IRA Distributions

How Much Tax Will I Pay On A Normal IRA Distribution?


Man signing tax form, detail
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Normal IRA distributions (meaning you take the IRA distribution when you are over age 59 ½) are included in your taxable income in the calendar year in which you take the IRA distribution.

How Much Tax Will I Pay On The IRA Distribution?

The total amount of tax you pay on an IRA distribution will depend on the total amount of income and deductions that you have that year.

If you look at a 1040 Tax Form, you will see on line 15 there is a place for “IRA distributions”. If your IRA was funded with pre-tax dollars, the full amount of the distribution will be taxable.

The amount of your IRA distribution is added to other sources of income you have to determine your adjusted gross income. Allowable deductions will reduce your adjusted gross income to come up with your taxable income.

Additional Taxes On Early IRA Distributions

If you are not yet age 59 ½, a 10% penalty tax will also apply to the IRA distribution, unless you qualify for an exception.

Learn more about early IRA withdrawals in:
IRA Early Withdrawals – Taxes, Penalties and Exceptions

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