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Early IRA distribution and medical exemption

tammie
Level 2

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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6 Replies 6
IRonMaN
Level 15

Check out form 5329

 

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tammie
Level 2

Thank you

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IRonMaN
Level 15

You betcha!

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gtissier
Level 1

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

cbriell
Level 1

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?

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sjrcpa
Level 15