Can we offset an IRA withdrawal with a loss carryover?

[skyking421]

Except for 2014, my wife and I have always filed long form, with various deductions, using TurboTax.  In 2014, the short form was the better choice.  TurboTax says we have $30,000 in carryover losses.  Can we withdraw $3000 from our IRA and subtract $3000 loss (the limit?) to eliminate taxes on that income?  Being retired, our income is low enough that we probably would have no taxes due otherwise.

[Hal_Al · Accepted solution]

Yes. But, the $3000 is, most likely, going to be subtracted anyway, from your other income. This assumes the person with the IRA is over 59-1/2. If you are under 59-1/2, the 10% early withdrawal penalty cannot be eliminated by deductions. 

If your income is so low that no taxes would be due, you may be able to withdraw more than $3000, tax free. 

You can use this tool to test the effect of different withdrawal amounts. https://turbotax.intuit.com/tax-tools/calculators/taxcaster/?s=1