Individual retirement accounts offer tax-sheltered savings for retirement. When you take a withdrawal, you will receive a Form 1099-R that will document how much of your withdrawal is subject to income taxes.
Self-employment taxes do not apply to IRA withdrawals because money taken from an IRA counts as unearned income, according to the IRS. Only earned income is subject to self-employment taxes.
Withdrawals from a tax-deferred IRA must be included in your taxable income when filing your income taxes. Qualified distributions from Roth IRAs are tax-free.
The self-employment tax includes a medicare tax and a Social Security tax. As of 2010, the Medicare tax rate equals 2.9 percent and the Social Security tax equals 12.4 percent.
401k Limit for Self Employment Tax
Learn about the IRA and 401k limit for self employment tax with expert tax advice in this free online self employment tax...
Do You Pay State or Federal Taxes on an IRA Withdrawal?
Each state sets its own rules regarding taxation of earned and unearned income. Some states tax only earned income from wages, business...
Do You Pay Tax on a Roth IRA Withdrawal?
More than 46 million U.S. households have an IRA account, according to the Investment Company Institute. Roth IRAs do not allow for...
Non-Employee Compensation & Self-Employment Taxes
Working for yourself can be rewarding, but it can be complicated and time-consuming from a tax standpoint. Self-employed individuals are subject to...
What Taxes Does an IRA Minimum Distribution Require?
Only tax-deferred IRAs, such as traditional IRAs, require minimum required distributions starting in the year you turn 70 1/2 years old. Roth...
Do You Pay Income Tax on an Inheritance?
The income tax on an inheritance is generally paid for by the person giving away the inheritance, and the IRS Web site...
How to Calculate Self-Employment Tax
Self-employed persons, sole proprietors and certain designated workers pay Social Security and Medicare tax through their self-employment tax. Here are a few...
What Are the Federal Income Tax Rates on a 401K Early Withdrawal?
What Are the Federal Income Tax Rates on a 401K Early Withdrawal?. A 401k plan is a specific type of tax-advantaged retirement...