In 2021, I had COVID-19 and took a distribution from my IRA. Is there a special tax break for this?

A coronavirus-related distribution is a distribution that is made from an eligible retirement plan to a qualified individual from January 1, 2020, to December 30, 2020, up to an aggregate limit of $100,000 from all plans and IRAs. There is no similar treatment for a distribution taken in 2021. If the IRA was funded entirely by tax-deductible contributions, then the distribution in 2021 is fully taxable. What’s more, if you are under age 59½, the 10% early distribution penalty applies unless you qualify for an exception to the penalty.