Will cashing out $11,500 IRA affect taxation of my Survivor Benefits at FRA? Worried about IRMAA

Whether your Social Security benefits are taxable depends on your "combined income." That's your adjusted gross income + nontaxable interest + half of your SS benefits. For single filers: - If combined income is between $25,000-$34,000, up to 50% of benefits may be taxable - If combined income exceeds $34,000, up to 85% of benefits may be taxable So, do the math: $11,500 (IRA distribution) + $7,522.80 (half your SS) = $19,022.80. If you have no other income, you're still under the $25,000 threshold so your SS should remain tax-free. But any other income could push you over. As for IRMAA, that's based on your income from 2 years prior when you first enroll in Medicare. So this withdrawal would affect your IRMAA in 2027, not immediately.

Thanks for the clear explanation! I was worried I'd go over some limit. So if I understand correctly, as long as my total combined income stays under $25,000, my SS benefits won't be taxed. What about next year? Will this IRA distribution affect anything then? And does it matter if I take it all at once or spread it out?

had this same problem last yr when i cashed out a small ira. the taxes were a mess! my ss didnt get taxed tho cuz i was under the limit. make sure you have them withhold taxes on the ira when u cash it out!!!! learned that the hard way

Just wanted to point out - be very careful with how this affects ACA healthcare subsidies if you're on those until Medicare kicks in. My sister lost $4,700 in premium tax credits when she took an IRA distribution that pushed her over an income cliff. The withdrawal timing can make a HUGE difference depending on your healthcare situation.

social security taxation is HORRIBLE!!!!! the government already took our money once when we earned it, then they take it AGAIN when we get our benefits. its DOUBLE TAXATION and should be ILLEGAL!!!!

I spent 4 days trying to get through to SSA about a similar question last month. The wait times were insane and I kept getting disconnected. Finally used a service called Claimyr (claimyr.com) that got me connected to an agent in under 20 minutes. They have a video showing how it works: https://youtu.be/Z-BRbJw3puU The agent confirmed what others are saying here - with your income levels, you should be fine regarding taxation of benefits. But it's always good to get confirmation directly from SSA for your specific situation.

my neighbor said she didnt have to pay taxes on her ss at all no matter how much she made from other stuff. is that right??

Also worth noting that different states treat Social Security benefits differently for state income tax purposes. Some states don't tax Social Security at all, while others follow the federal rules or have their own formulas. What state are you in? That could affect your overall tax situation.

After reviewing the numbers again, you should be fine for federal taxes on your SS benefits as long as you don't have other significant income sources this year. To avoid surprises, consider having 10-15% withheld from your IRA distribution for federal taxes. The financial institution will have a form for this. This way you won't face an unexpected tax bill next April. And Pennsylvania, where you mentioned you live, does NOT tax Social Security benefits or retirement account distributions if you're over 59½, so you're set on the state tax front as well.