I'm thinking of taking a lump sum from my IRA to pay for a building project. Will this put me in a higher tax bracket or can I average this...

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Customer

I'm thinking of taking a lump sum from my IRA to pay for a building project. Will this put me in a higher tax bracket or can I average this distribution over a few years?

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Victor Santucci EA
Tax Preparer

Hello and welcome to ExpertHelp.com! My name is Victor Santucci EA and I'm going to do everything in my power to answer your question to your full satisfaction!

I’m available to chat now. Please let me know that you are ready by posting a response. I’ll leave my chat session open for the next 15 minutes or so and wait for your reply. If I don’t catch you this time, please respond with a few times (including your timezone) that work best for you and we can connect then.

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Customer

Hello.

Posted
Victor Santucci EA
Tax Preparer

Richard,

You can't use tax averaging for an IRA and you have to pay tax on the full distribution which could put you into a higher tax bracket.

See the attached link for the 2017 tax rates:  http://www.savingtoinvest.com/federal-irs-tax-brackets-tax-rates-and-other-tax-updates/

Victor Santucci  EA

Posted
Customer

I guess that answers it. I guess I could take half this year and half in January, but this might not result in a lower bracket. What are the income/tax brackets?

 

Posted
Customer

Oops. I guess thatr's what your link contains.

thanks.

Posted
Customer

Dear Mr. Santucci:

  You answered my question succinctly, however, I had a follow up question and when I followed the link you provided I lost our conversation. It was a very minor anoyance and I'm satisfied with your answer. I don't know if you can do anything about this in the future; perhaps you could write a warning that following the link will end the conversation.

Thank you.  

Posted
Victor Santucci EA
Tax Preparer

Richard,

I do not have any control of what occurred, but I do apologize .

 Experthelp monitors these messages and I am sure they will work on fixing the problem.

Thank you for letting know.

Victor

Posted
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