@Shady2218 wrote:
Because RMDs are a large part of our income, with no required RMDs for 2020, our income dropped considerably -- to a lower bracket. A test 2020 tax return indicated $4000. could be taken with no tax ramification. However, indications are more can be withdrawn, but it must be withdrawn prior to 12/31. Really need the investment section of Turbo asap to take advantage of a further tax-free RMD for 2020.
There is not RMD at all for 2020, but you can take a normal distribution if you want to.
Tax wise, an RMD is not different that ANY other IRA distribution, except that it is required. There is no difference in the tax between a RMD distribution and a normal distribution of the same amount.
I don't know what you mean by "no tax ramification". Any distribution is taxable and adds to your AGI and taxable income even if in a lower tax bracket. If you do not need the money, then I do not see the advantage of taking it out of the IRA. There is no "tax free RMD for 2020" since there is not RMD at all. The only thing that is tax free is not to take any distribution at all.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
