06-21-2005, 10:48 PM
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 Re: Early Distribution and Disability, Medical Expenses << General Disclaimer: > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << It cannot be used by any taxpayer for the purpose of > << avoiding penalties that may be imposed on the taxpayer. > << ================================================== ===== > Sassy Baskets, EA wrote: - quote - > Taxpayer is on disability for severe, treatment-resistant
I believe the rules are the same for both IRAs and qualified> depression. Medical expenses are in excess of 7.5% of gross > income, largely due to insurance costs. He'll be > withdrawing money from his 403(b) to cover some of these > expenses. I know that the amount equal to the deductible > medical expenses (in excess of 7.5%) is exempt from the 10% > penalty. My question is this: If he rolls the money over > into an IRA first, can he withdraw more than that amount > without penalty? Do these circumstances qualify for the > exception for disability? retirement plans relating to the early withdrawal penalty exception for both unreimbursed medical expenses in excess of 7.5% of AGI and a permanently disabled person. The disability exception would require a physician's certification. -- Alan http://taxtopics.net << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << Copyright (2005) - All rights reserved > << -------------------------------------------------> |
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#-1
06-21-2005, 04:51 AM
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| Early Distribution and Disability, Medical Expenses Taxpayer is on disability for severe, treatment-resistant depression. Medical expenses are in excess of 7.5% of gross income, largely due to insurance costs. He'll be withdrawing money from his 403(b) to cover some of these expenses. I know that the amount equal to the deductible medical expenses (in excess of 7.5%) is exempt from the 10% penalty. My question is this: If he rolls the money over into an IRA first, can he withdraw more than that amount without penalty? Do these circumstances qualify for the exception for disability? << -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << Copyright (2005) - All rights reserved > << -------------------------------------------------> |
| Tags |
| disability, distribution, early, expenses, medical |
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