Pension early removal was for down payment on a car. Mine was totaled, when I hit a deer on my way home from work(25 miles from home). Can that be used to lower penalty?

[cariedecoste]

Plattsburgh is closest city to home, where most jobs are.  My long term job is what supports my family, who have a 5 year old.  There is no real public transportation system, so people in the area need a vehicle to work or buy necessities.

[MinhT1]

Unfortunately, there is no exception to the early withdrawal penalty of 10% for buying a car, even if your car was totaled and you need a car to go to work.

However, in 2020, if you were affected by Covid-19, you can claim an exception to the penalty.

Please read this IRS document for more information.

[fanfare]

@MinhT1 

If the deer had COVID, does that count ?