Sentences with phrase «face ordinary income tax»

If you cash out these plans before you reach retirement age, you'll face ordinary income tax.

Not exact matches

For example: A married couple earns $ 350,000 of ordinary income and faces a marginal federal tax rate as high as 39.8 %: a 33 % tax bracket plus two percentage points for the phaseout of personal exemptions, one point for the phaseout of itemized deductions and a 3.8 % Medicare surtax on net investment income.

You would face a tax burden on that $ 1,000 — it would be your ordinary income tax rate plus a 10 % penalty.