JohnS_CPA
Expert Alumni

Get your taxes done using TurboTax

If your withdrawals are from an IRA or 401K, then yes,  your income is what you withdraw.

 

Keep in mind there are required minimum distributions (RMD's) for retirement accounts. Depending on your age you may or may not be subject to RMD's.

 

If you are subject to RMD's then you have to withdraw the minimum. After that you can control what you take out and what your income would be.

 

If your withdrawals are from taxable brokerage or other financial account (i.e. non retirement accounts) taking money out of the account is not a taxable event unless you are selling stocks, bonds or some other asset to generate cash for the withdrawal.

 

If you are dealing with retirement accounts your financial institution should be able to help you with what your RMD's need to be. Failing to meet RMD requirements can result in penalties.

 

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