Ask Terry Questions Taking extra money out of IRA

Taking extra money out of IRA

By Terry Savage on July 30, 2018 | Financial Planning / Retirement

If I take more than my RMD out of my traditional IRA, will it be taxed as ‘ ordinary income’ ? And if so, can I use the standard deduction on that amount ?

Terry Says

ALL the money you withdraw from a traditional IRA is considered “ordinary income” and taxed at your marginal tax bracket. The standard deduction applies to all income. The reason most people take only the required minimum distribution each year is that they want to make their money last longer!

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