Do I Pay Tax On My Ira Withdrawal After Age 60?

The answer to the question of whether or not you have to pay tax on an IRA (Individual Retirement Account) withdrawal once you’re over the age of 60 partly rests on what kind of IRA you have, a traditional IRA or a Roth IRA. Only a Roth IRA offers the option of a tax-free withdrawal, an age over 60 being one of the requirements.

A traditional IRA has strict eligibility requirements, and every withdrawal from a traditional IRA is subject to federal income tax. The traditional IRA contrasts with the Roth IRA, which offers what are called qualified withdrawals.

As long as you’ve had your Roth IRA for at least five years, which is the other requirement for a qualified withdrawal, you do not have to pay tax on a withdrawal from it once you’re over the age of 60. This is one of the main advantages that a Roth IRA has over a traditional IRA.

Another difference between a traditional IRA and a Roth IRA is that contributions to a traditional IRA can be tax deductible, whereas contributions to a Roth IRA can never be tax deductible.

If you’re not over 60, or if you have not had the IRA for at least five years, the amount of tax paid on a withdrawal from either a Roth IRA (as well as a traditional IRA) can be as high as 20 percent.

If you’re looking for withdrawals that are not subject to federal income tax, then you want a Roth IRA. Just know that you can’t deduct any contributions to a Roth IRA from your income tax.

I have a guarenteed amount on my annuities but I can take 8207.00 next month when I turn 59.5  What or how much tax will I have to pay I' am retired and applying for permanent disability

Depends on what type IRA. (Traditional or Roth)
 
For traditional, I believe the financial institution holds about 20% for taxes.
 
I am not an expert on this, obviously.
 
If you google "taxes on IRAs", you will get a lot of sites to review on the issue.

If I withdraw money from my Regular IRA rollover in a Roth IRA, how do you calculate the taxes on the amount withdraw

I've just made a lump sum withdrawal from my IRA.  It's considered to be a distribution.  Please see www.irs.gov .  Look up "Forms and Publications".  Find the instructions for the 2007 Form 1040, got to pages 21 ans 22.  If you made non-deductible contributions to your IRA over the years, it's possible there could be no tax on the withdrawal.  You should have a copy of your last Form 8606 (Non-Taxable IRA Contributions) which will show your total basis of non-taxable contributions over the years.  With that you will be able to compute what part of the $10,000, if any, will be taxable. 

Yes, you’ll have to pay income taxes on a portion or all of the IRA withdrawals you make anytime after age 59½. Hence, if you need money for unplanned expenses, you are suggested to consider all available options before withdrawing from a tax-advantaged IRA, so that your savings can continue to grow. If you are willing to know more about annuity insurance policies, you can visit our site optinsure for the same.

80 years old man wants to withdraw all his remaining money from ira contract....is it penalty and
tax free.....if not how much taxes or penalty he has to pay

1,000.00 is tax