I am disabled and paid no tax last year. How do I figure out how much money I can withdraw and stay in a lower tax bracket?
What is the maximum amount of money I can get out of my retirement fund
Sep 17, 2012
2 Replies
Even though I've written articles on this topic for my own blog,
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the site I reference. It's updated every year with the latest numbers. You can see from the chart, for a single person, $3,800 exemption and a $5,950 standard deduction, so $9,750 is what I call the "zero bracket." Of course, depending on the rest of your situation, you might actually exceed the $5,950 and would be best off itemizing. I owe this helps you.
Well, one approach is to use the top of the 15% bracket (plus itemized/standard deduction and exemptions) to figure how much adjusted gross income to have. You also need to consider whether you are over age 59 1/2, which means you aren't subject to the 10% additional tax, and whether you need all of this to live on. If you don't, do a Roth conversion for the balance. So, it's not a simple answer.
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