Not exactly. There is still tax on withdrawals. By definition, a withdrawal would be more than 0.
The corona virus legislation allows the tax to be paid ratably over 3 years and forgives the 10% early withdrawal.
For more information, see: Coronavirus-related relief for retirement plans and IRAs questions and answers which includes the following:
Q4. What is a coronavirus-related distribution?
A4. A coronavirus-related distribution is a distribution that is made from an eligible retirement plan to a qualified individual from January 1, 2020, to December 30, 2020, up to an aggregate limit of $100,000 from all plans and IRAs.
Q5. Do I have to pay the 10% additional tax on a coronavirus-related distribution from my retirement plan or IRA?
A5. No, the 10% additional tax on early distributions does not apply to any coronavirus-related distribution.
Q6. When do I have to pay taxes on coronavirus-related distributions?
A6. The distributions generally are included in income ratably over a three-year period, starting with the year in which you receive your distribution. For example, if you receive a $9,000 coronavirus-related distribution in 2020, you would report $3,000 in income on your federal income tax return for each of 2020, 2021, and 2022. However, you have the option of including the entire distribution in your income for the year of the distribution.
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