Does quitting job in March 2020 for fear of Covid qualify for penalty free IRA Coronavirus Distribution
In March of 2020, 2-days before the governor shut down the state, my client quit his job out of fear of COVID and commuting on the trains into the city of Chicago for work. As a result, he did tap into his IRA to get through 2020. Since his departure was not forced, but was out of true fear for the health of his family, can he get relief from the 10% penalty under the CRD rules. Know the CRD rules are being generously applied but not sure if they applied to voluntary departures due to COVID?
Permalink Submitted by Alan - IRA critic on Mon, 2021-03-29 16:07
Client or spouse if married would have to come up with another Covid related eligibility for CRDs since fear of Covid would apply to anyone. I doubt the IRS will be auditing anyone who claims a CRD, but fear of Covid is not one of the reasons provided in Notice 2020-50.
Permalink Submitted by Charles Foster on Mon, 2021-03-29 21:43
Alan, thank you, appreciate your response. Agree with your statement. I didn’t pose the question well, but I was coming to the same conclusion.