Tax liability on retirement payout
I reinvested a supplemental retirement account into an IRA. Roughly 300,000. Another 27,000 I put into my savings because I bought a long term care policy that is roughly 9,000 per year and I wanted to have at least three years liquid. Apparently a big mistake- taxes now owed in it. Is there anything that can be done before filing to alleviate that? I just turned 62 if that would have bearing. Thanks I’m advance
Terry Says
If you still have earned income you can put $7,000 in a tax deductible IRS — quickly — and that will lower your taxes. Other than that, you have to pay ordinary income taxes on all withdrawals from qualified retirement accounts.
