More than 10% or 7.5%
In 2019, one of the exceptions to the 10% IRA early withdrawal penalty is if you have unreimbursed medical expenses that are more than 10% — or 7.5% if you or your spouse were born before January 2, 1952 — of your adjusted gross income (assumes that you to itemize on your taxes).
Is it true that in 2020, all people (regardless of birthday) will have to have unreimbursed medical expenses that are more than 10% of their adjusted gross income? i.e. the lower 7.5% threshold will no longer apply
Please advise. Thank you very much.
Permalink Submitted by David Mertz on Sat, 2019-12-07 00:06
2018 was the last year for the 7.5% threshold. The threshold is 10% of AGI for everyone in 2019 and beyond.
Permalink Submitted by Alan - IRA critic on Sat, 2019-12-07 00:38
If there was a job loss and unemployment collected, check into the medical insurance penalty exception. That exception is not subject to the 10% of AGI floor.