IRA distribution for medical
Can an IRA distribution be used for medical purposes? What are the tax benefits? Is the penalty waived? The distribution would be taxable – correct?
Can an IRA distribution be used for medical purposes? What are the tax benefits? Is the penalty waived? The distribution would be taxable – correct?
Permalink Submitted by Alan - IRA critic on Thu, 2024-05-16 19:12
Yes, the distribution would be taxable except to the extent of any IRA basis. However, amounts paid for unreimbursed medical expenses that exceed 7.5% of AGI will not be subject to the 10% early distribution penalty. Medical expenses include those for spouse and dependents.