Took $ out of IRA.

[Anonymous]

Deductible IRA, I had to withdraw about 25k because of medical emergency. HHI is around 215k (if you don't count 401k deductions). How bad is the tax hit going to be from the 25k being added to our HHI as income?

[Anonymous]

It will be whatever your % is for your taxes (28% or whatever it is). It's just added in as income. If you are under 59.5 years of age, they will add a 10% penalty.

[Anonymous]

You will owe roughly $10,500 in additional state and federal income tax.

[Anonymous]

Anonymous wrote:You will owe roughly $10,500 in additional state and federal income tax.

Elaborating: I multiplied 25,000 times 42%, which would be about the marginal tax rate plus penalty plus state.

That said, if all 25,000 was used for medical purposes, you may have some additional deductions that may temper that. You can begin claiming medical deductions once they exceed 10% of your income (unless you are a senior, in which case the floor is still 7.5%).

[Anonymous]

You could file you taxes as married-single instead of joint to get more medical deductions.