Best way to take from IRA during pandemic

[frugal-one]

Scroll down to get to meat of the article.
https://www.kitces.com/blog/corona-v...ution-penalty/

[bae]

Oh. Wow. Thanks!!!!

[bae]

https://www.irs.gov/newsroom/coronav...ns-and-answers

It's quite excellent!

[iris lilies]

I can’t see how I could take advantage of this.


Well I would like to theoretically pull out $100,000 for each of us this year from IRAs with no tax consequences (?) Since my health has not been touched by the virus, nor my work situation changed because of it, nor my business income change because of us because I have no business, I can’t see this helps me.

I suppose if I could get a COVID-19 antibody test that was positive, then I would have documentation to work this angle. But I don’t want that and I don’t want anyone to think I’m taking the Covid test lightly because I’m not.

[SteveinMN]

I can’t see how I could take advantage of this.

Doesn't look like there's a way for you without any qualification.

If the IRAs are Traditional IRAs you'll owe money taking it out. You might be able to convert it to a Roth IRA (a "back door Roth") and pro-rate some of the taxes; the positive there is that when you take that money out later it will already have been taxed at today's rate and not at the future's presumably higher rate. n.b., I am not an investment professional and I didn't stay at a Holiday Inn Express last night. But it might be worth looking into if you can save some of the taxes.

[Tradd]

I cashed out the 401K from the company I was laid off from in March. I now have a nice chunk in my savings account that I feel much better having there.

[iris lilies]

I read it more carefullY and see that there are the usual tax consequences, it's just that I could spread that tax payment over 3 years. This is not useful to me.

That is fine. I’m not affected by Covid and so do not need any help.