Why are you doing this? Reading between the lines, it appears
you want to remove it because you are in a lower tax bracket now than you
expect to be in the future.
***No, because it's just sitting there and I have an enornous amount of veterinarian expenses and dental expenses which I'd like to be able to withdraw from this amount. I would like a liquid account.
You cannot make a withdrawal, at this time, for tax year
2017. That had to be done on or before 12-31-17. Anything you do now will count
for tax year 2018. So, you may want to wait til later in the year to have a better
handle on your overall tax situation.
**My tax situation will remain the same. I waited from doing it last year to this year already.
“I am not withdrawing
it too early”. I take that to mean you
are over age 59-1/2. If you are under age 59-1/2, you will have to pay a 10%
early withdrawal penalty, in addition to the 15% tax.
I'm 67, so no penalty.
Instead of removing money and putting it into a taxable
account, you could consider converting some of your traditional IRA to a Roth
IRA. You pay the same amount of tax, as withdrawing the money (but no penalty
for those under 59.5) but the money can be invested free of future tax.
As I said, I want to use it for a lot of expenses.
