Traditional IRA Distributions

My mother is 86 and took a $13K distribution form a traditional IRA account to put down on a replacement car. She did not withhold any taxes.

Is there any situation or allowance for her to make a Traditional IRA withdrawal without paying the normal taxes.(She had to use the money after her car was struck and totaled.)

posted

There is not an exception to the ordinary tax due on an IRA distribution. She is not subject to the early withdrawal penalty, but she is subject to the ordinary income tax. The exceptions the IRS provides are for the early withdrawal penalty which she is not subject to anyway. She does gets a higher standard deduction that will help to lower her overall taxes on her tax return.

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