Unreimbursed Medical Expenses
Hello,
With respect to the early withdrawal exception for unreimbursed medical expenses, is it required that the medical expenses be for the IRA owner? If the expenses were for the IRA owner’s son, could the IRA owner still qualify for the early withdrawal exception?
Also, are there any guidelines that specify what kind of medical expenses qualify for the exception? In this case a parent wants to use money from an IRA to pay for her son to go to an addiction treatment center.
Thanks!
Permalink Submitted by Alan - IRA critic on Wed, 2019-03-20 16:15
The penalty exception applies to the medical expenses of the IRA owner’s dependents, so the son must be a dependent for which the IRA owner could itemize the specific expense IF the owner itemized. The % of AGI that cannot be itemized for medical deduction purposes is 10% this year, was 7.5% the last two years. The penalty exception is claimed on Form 5329, exception code 05. Addiction treatment is an eligible medical expense.