10% pentalty ?

[pamoore]

What is the name of your state? AL

I am about to have periodontal surgery and dental implants. The dental implants are not covered by insurance. I am considering taking an early distribution from my quailified IRA account to finance this. Will this fall into the "exception" to the 10% penalty before age 59 1/2 rule??? I would hate to be hit with an additional 10% on top of the medical costs. It will all be tax deductible according to the doctors office, but they were unsure about the early withdrawal. This is NOT a cosmetic procedure, it will be full permanant dentures. Thank you.What is the name of your state?

 

[tranquility]

Only the amount you could deduct as qualified medical expenses would be free from the 10% penalty--whether you itemize expenses or not.

What that means is that even if you take the standard deduction, you would calculate your AGI as normal (including the amount of the distribution from the IRA). Then you multiply that by 7.5%. All medical expenses you have above that figure is the amount you can remove from the IRA without penalty.

 

[bobo21]

Similiar situations

I had a friend that need some medical work done so he did what you thinking of. I guess there are some exceptions. He said he found some info at www.alphawebknowledge.com