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Question

Joe
Newcomer

Joe asked 14 days ago in Individual Retirement Account (IRA)

Can medical insurance payments be claimed as an expense?

I had to take an early withdrawl on my IRA account and was wondering if I can claim Medical insurance payments as a non-reimbursable medical expense? If I can, it would put me above the 7.5% medical cost and I believe make me exempt from the 10% penelty?
Thanks

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Walt Mozdzer, CFP®Napfa_small
Expert Partner
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As far as the 10% penalty tax exemption, your answer is found in the Instructions for IRS Form 5329. Here is a link:

http://www.irs.gov/pub/irs-pdf/i5329.pdf

Check out the exemptions to the tax on page 3. Good luck.

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Ari Weinberg
FiLife Contributor
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I'm not sure if these two things are related. You are saying that you took an early withdrawal to pay insurance premiums...

I would check with a tax advisor on this.

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