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Level 4
March 9, 2020

Early IRA distribution and medical exemption

  • March 9, 2020
  • 2 replies
  • 7 views

If the client has large medical expenses and takes an early distribution for which he would normally be penalized, where in the Form 1099-R worksheet do I  indicate that the early distribution was for medical expenses and eliminate the 10% penalty?  Thanks for any help.

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    2 replies

    IRonMaN
    Level 15
    March 9, 2020

    Check out form 5329

     

    Slava Ukraini!
    tammieAuthor
    Level 4
    March 9, 2020

    Thank you

    IRonMaN
    Level 15
    March 9, 2020

    You betcha!

    Slava Ukraini!
    Level 2
    April 4, 2020

    enter the amount of excess medical expenses (normally the amount that would be deductible on Schedule A = over 7.5% AGI) on form 5329, the penalty form

    Level 2
    May 21, 2020

    Once you have filed the 5329 with the medical exemption (05) what happens? If your retirement vendor has withheld the 10% already, how/when do you know if the exemption was approved?

    sjrcpa
    Level 15
    May 21, 2020