Fertility treatments are deductible medical expenses and
would qualify for the 10% early withdrawal penalty
exception. The total amount must be reduced by 7.5% of your
AGI, which does not qualify for the exception.

Don in Colorado

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<dcigary[at]gmail.com> wrote:

- quote -

Yes. You will need to include Form 5329 to claim the
penalty exception.

- quote -

Yes. See IRS Publication 502.

--
Phil Marti
Clarksburg, MD

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

This year, my wife and I started fertility treatments to
become pregnant. Since my insurance plan at work does not
cover fertility related treatments, we took a distribution
from her two 401k accounts, and half of my 401k account
(which was processed during a rollover to an IRA). I was
looking through the tax codes, and it mentions that the 10%
tax penalty for early withdrawl can be exempted if the money
was used for medical expenses. Would these ferility
treatments be eligible?

Also, on the subject of fertility - We had to pay for these
procedures out of pocket - from the distrubutions we receved
from the 401k accounts. Does this amount qualify for
itemized deductions?

I understand that the money we withdrew is counted as
taxible income, and that's fine, I'm just trying to find out
what all this means to my taxes.

Thanks for any information!

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >