Things You'll Need:
- computer
- figures from your bank
- tax information or contact for a tax professional
- calculator
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Step 1
Determine if the withdrawal is going to cost you. If you are over retirement age (59 1/2) then there will be no penalty. If not, it can vary by your bank or institution. Call them to find out specifics.
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Step 2
Now see if the amount of the withdrawal will put you into a higher tax bracket. If so,it could put you at higher rate.You might consider putting an appropriate amount into a savings account to pay taxes with at the end of the year. IF the IRA is a ROTH IRA, no need to worry, because this type of withdrawal is not taxed.
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Step 3
Another step you might take is to contact your tax preparer on any tips to lower that year's tax.
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Step 4
Now, if you have reached that magical age of 70, then you know you will soon have to start taking a Required Minimum Distribution. This is a predetermined amount that you must take each year. This can be figured by going to your bank or institution or to a website like kiplinger.com. This amount can change though, so check at least once a year.
