Return to Blog

Withdrawing Money from an IRA


I have an IRA which holds $100K and would like to withdraw some of it to buy a new home. But, I am also collecting Social Security and wish to understand the possible tax consequences of IRA withdrawals. How would my tax situation change?


Over the age of 59 1/2, withdrawals from IRAs are taxed at your standard income rate. If your only income is social security, your taxable rate could be low, as your Social Security is probably not taxed. If you have other sources of income (pension, etc.) then you would add your withdrawal to your total income and pay the Federal and State tax rate where your new income total falls. It is important to have taxes taken out when you do the withdrawal to prevent a surprise next April.  You can base your tax off the most recent IRS tax table here. You don't want to take out too little in taxes and then owe more money when you file your tax return.

An IRA withdrawal should not decrease your Social Security payments if you are under your full retirement age, only wages and salary income will do that, HOWEVER, it is likely that a part of your social security could become taxable. This is all very general information. To truly determine your taxed owed, if any, I suggest doing some tax planning with a Certified Public Accountant (CPA).

Have more questions? Email us at [email protected] or use the Contact Us page.

Wiser Wealth Management, Inc. is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.

Happy Birthday to Kylie, our Marketing Assistant! Kylie works hard behind the scenes on our website, podcast, social media, and so much more.

Meet Daphne, our Financial Planning Intern. She is studying Finance at The University of Georgia. We are excited she's joined us for the summer!

Your Medicare premium is affected based on which tax bracket you fall within after age 63. IRMAA is your income-related monthly adjustment amount. Watch today's video to learn more about how IRMAA works. #irmaa #medicare

The big question is, will we have a recession in 2022? Watch this video to find out! #recession2022 #recession

Happy birthday to LJ our Video Production Manager! LJ works behind the scenes producing all of our podcasts and videos that we post every week. 🎉



Client Access

Firm Information

Schedule a Meeting
678-905-4450[email protected]
Google Rating
Based on 71 reviews