# IRA withdrawals for 2020 ?



## Jimmy44 (Jan 12, 2020)

I was wondering if there will be any IRA relief for IRA withdrawals durring the pandemic.
I have not worked since March and have had to dip into my IRA as a result.


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## islanddriver (Apr 6, 2018)

This explains all.
https://www.irs.gov/newsroom/corona...u're not required to,waive your RMD for 2020.


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## Jimmy44 (Jan 12, 2020)

islanddriver said:


> This explains all.
> https://www.irs.gov/newsroom/corona...u're not required to,waive your RMD for 2020.


Thank You


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## aluber1968 (Aug 7, 2016)

Jimmy44 said:


> I was wondering if there will be any IRA relief for IRA withdrawals durring the pandemic.
> I have not worked since March and have had to dip into my IRA as a result.


I hope that you are collecting unemployment.


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## Jimmy44 (Jan 12, 2020)

aluber1968 said:


> I hope that you are collecting unemployment.


198 a week



Jimmy44 said:


> 198 a week





Jimmy44 said:


> 198 a week


I see they are waiving the early withdrawals penalty.
Will this withdrawals be considered income and subject to tax ?


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## Seamus (Jun 21, 2018)

Jimmy44 said:


> 198 a week
> 
> 
> I see they are waiving the early withdrawals penalty.
> Will this withdrawals be considered income and subject to tax ?


I posted a thread on this a couple weeks ago because time is running out, it ends on 12/31 unless they extend it. The 3 big advantages of this special deal are:

As you said the penalty is waived.
Yes it's taxable income, HOWEVER for tax purposes you are allowed to spread the withdrawal amount over the next three tax years to minimize the impact. So for example if you withdraw $30k, instead of the $30k counting as income next year, it can be $10k next year and in each of the following 2 years.
Because of the income being spread over three tax years, there is only a 10% mandatory withholding instead of the usual 20% so you will get more $$$ net in the check.
The best thing is to never touch your retirement savings, but if you must this is a great deal.


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## Jimmy44 (Jan 12, 2020)

Seamus said:


> I posted a thread on this a couple weeks ago because time is running out, it ends on 12/31 unless they extend it. The 3 big advantages of this special deal are:
> 
> As you said the penalty is waived.
> Yes it's taxable income, HOWEVER for tax purposes you are allowed to spread the withdrawal amount over the next three tax years to minimize the impact. So for example if you withdraw $30k, instead of the $30k counting as income next year, it can be $10k next year and in each of the following 2 years.
> ...


Really appreciate that information. 
It is a big relief to hear that.
I never tapped my IRA but after July 26th I could not live on the 198.
Thanks again for the info


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