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
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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.
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