Q: I receive social security my only income.Have 401k which need withdraw from.How much can I withdraw without having to fi
File tax return.I get $1842 month from social security
A:
The amount you can withdraw from your 401k without having to file a tax return depends on various factors, including your total income, filing status, and age. Since you receive $1,842 per month from Social Security, this amounts to approximately $22,104 annually.
For the tax year 2023, if you are single and under the age of 65, you generally need to file a tax return if your gross income is $12,950 or more. However, since Social Security benefits are partially taxed depending on your other income, the threshold for filing could be higher.
Withdrawals from your 401k are considered taxable income. To stay below the threshold, you would need to calculate your combined income (including Social Security and 401k withdrawals) and ensure it doesn’t exceed the filing requirement.
It's important to consider that even small 401k withdrawals could make a portion of your Social Security benefits taxable, potentially requiring you to file a tax return.
Given the complexity of tax laws, it's advisable to consult with a tax professional. They can provide detailed guidance based on your specific financial situation and help you understand the best approach to take with your 401k withdrawals. Remember, careful planning is key to managing your finances effectively while on a fixed income.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
