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New Member
posted Jun 7, 2019 3:27:56 PM

I withdrew portion of my IRA to cover damages for my totaled car and deductible. Can this be an exemption for taxes on the amount withdrew?

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1 Replies
Level 15
Jun 7, 2019 3:27:59 PM

Unfortunately no. It's not one of the penalty exceptions. So if an early withdrawal in addition to regular income tax, you'll also pay a 10% early withdrawal penalty.

If you were of retirement age or older on the date of the withdrawal, it will be subject to regular income tax only.