The key point is that an IRA withdrawal is always "subject to income tax." It makes no difference whether or not you have W-2 income in the same year. The IRA withdrawal is always taxable income. Whether you actually have to pay any tax on it depends on how much you withdraw and how much other income you have, of any kind, not just W-2 income. If the IRA withdrawal is large enough you will have to pay tax on it even if you have no other income at all. Not having W-2 income does not mean that you don't have to pay tax on the IRA withdrawal.
