I really appreciate the clarification and your time @dmertz
I understand that the action of taking everything out as a regular distribution would mean I'd pay higher taxes unnecessarily. But it is honestly a relief to know this option exists. If I proceed with that route, I would consider it the same as buying "insurance" – in this case, insurance that I don't accidentally miscalculate my gains/losses and expose myself to IRS scrutiny. It's a high price to pay, but I'll know I can sleep at night. Plus, it would make completing the tax forms easier.
I will think about it and post a follow-up message on here once I make a decision in case anyone else in a similar situation finds this information helpful. Thanks again!
