Discussion:Medial expense exeption to early withdrawel penalty
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Revision as of 20:52, 7 August 2006
Discussion Forum Index --> Tax Questions --> Medial expense exeption to early withdrawel penalty
DR BRISKET (talk|edits) said: | 7 August 2006 |
| My client withdrew $10,000 in IRA's last year to pay for medical expenses for her dependent son. Since she is under age 59 1/2, she would generally be subject to the 10% early withdrawal penalty, which would be $1,000. The client's total qualified medical expenses were $15,200. 7.5% of client's AGI is $12,100, meaning she has a $3,100 medical deduction for Schedule A. My question is how much, if any, of the $10,000 IRA distribution qualifies for the early withdrawal exception? I'm thinking I will have to start with the $10,000 in IRA distributions, and then subtract the 7.5% AGI threshhold of $12,200, leaving a result of zero than can be excepted. Or, would the exception be $3,100 (the total medical expenses less the 7.5% AGI threshhold). Thanks for any assistance offered. | |
