Tax Free withdrawals
A client came to me the other day and told me that if someone is unemployed they are entitled to take $20,000 annually out of their IRA TAX FREE. Is there such an exception? If so, can you direct me to a ruling?
A client came to me the other day and told me that if someone is unemployed they are entitled to take $20,000 annually out of their IRA TAX FREE. Is there such an exception? If so, can you direct me to a ruling?
Permalink Submitted by Alan - IRA critic on Mon, 2015-08-31 18:20
There is no such IRA related rule, but if a person has no other income whatsover, depending on filing status they could take an IRA distribution up to the amount of their personal exemption and standard deduction tax free. There is also an early withdrawal penalty exception for an IRA distribution to pay medical insurance for immediate family if 12 consecutive weeks of UC was collected.
Permalink Submitted by Andrew Wasa on Mon, 2015-08-31 18:46
That’s what I thought. Thanks for your help.