10% penalty exception
Hello,
We have a client who took a 2017 IRA distribution. We determined he qualifies for both unreimbursed medical expenses (>7.50% AGI) and qualified higher education expense exceptions. Can both exceptions be applied to the same IRA distribution as he used the funds for both education and medical expenses.
Thank you.
Permalink Submitted by David Mertz on Wed, 2018-10-10 17:10
Yes, different exceptions can be applied to different portions of the early distribution. Form 5329 must be filed with line 2 showing code 12 (indicating that more than one exception applies) and the total of the exceptions being claimed.