My wife and I will both retire next year. Will our IRA withdrawels and Social Security be included in our MAGI for computing income tax?
Question:My wife and I will both retire next year at 64. Her Social Security is about $12,000 and mine is about $24,000. We will also be drawing about $50,000 out of our IRAs and Roth IRAs. Will either of these be included in our MAGI for computing income tax?
The regular IRA will be included in MAGI. The Roth IRA is not included in MAGI. The MAGI calculation is used to determine how much of your Social Security income is taxable. AGI (not MAGI) is used for computing income tax.
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