Did you know there are several ways to take money out of your IRA tax-free? Remember, just because you CAN, doesn’t mean you SHOULD.
The first thing you should do is consult your tax/legal/financial advisor(s) and determine if taking money out of your IRA is the right step for you!
Option 4: Net operating losses.
If you have deductions or losses in a prior year that generated a negative taxable income, you may be able to carry that forward! Many of these deductions from the prior year are able to be carry forwarded into the next year and can be taken against the IRA distribution.
Everyone’s situation is different! Make sure to consult your trusted advisors to determine what is appropriate for your situation!
Information gathered from MD Producer article for professionals