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Barbara
Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 2832
Experience:  18+ years of experience in tax preparation; 25+ years of experience as a real estate/corporate paralegal.
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I am having an elective surgery that is not covered under my

Customer Question

I am having an elective surgery that is not covered under my medical insurance and I am planning on taking it from my Merrill Lynch IRA that was rolled over from a 401K. The surgery will exceed 7-10% of our annual income. What penalties will I face? Thank you.
Submitted: 1 year ago.
Category: Tax
Expert:  Barbara replied 1 year ago.
Welcome to Just Answer. My name is ***** ***** it will be my pleasure to assist you with your tax question today.
You can use IRA distribution to pay for unreimbursed medical expenses that EXCEED 10% of your adjusted gross income without incurring the early withdrawal penalty (10%). The distribution must be in the same year as the medical expense.
However, you will still have to pay the income tax due on the IRA distribution.
Please let me know if you require further information or clarification.
Thank you and best regards,
Barb
Expert:  Barbara replied 1 year ago.
I see you are now offline.
If you have any other questions, please come back to me here at your convenience, and I will be happy to assist you. If not, please take a moment to rate my answer since that is the only way I receive credit for answering you and alerts Just Answer to compensate me.
Best regards,
Barb