Early Retirement Withdrawal

We decided to cash in one of our retirement Roth IRA Funds for 68,000 we have paid 5% to the state and 20% to the federal government but will there be additional tax charges when we file that we should be aware of? My husband makes 70,000 a year but we have a 35,000 dollar housing allowance. So our taxable income is usually around 35,000. Of the 68000 dollars we received about 50,000. We gave to charity 21,000 and paid off 20,000 in debt and we are holding onto 9000 just in case we will owe more taxes. We would like to give as much of the 9000 away as we can in 2013 but we don’t want to be stuck owing more than we kept back. Please advise. Thanks!!

Terry Says:  You need a tax advisor immediately!  If you cashed in a ROTH IRA, you won’t owe taxes!!  No taxes — because a Roth is an after-tax IRA!  And if it was a traditional IRA, this was the last year to give money to charity directly from your traditional IRA — WITHOUT PAYING ANY TAXES!  (Even if you are younger than 59-1/2, there is a no penalty withdrawal from a Roth, depending on how long you held the account.) These details are very important.

It sounds like you are very confused.  Please contact a CPA — certified pubic accountant NOW, before year-end — so he/she can figure out what you had, what you did, and what you can do now to deal with the tax situation.