"Mark Bole" <makbo@[EMAIL PROTECTED]
> wrote
> Elle wrote:
>> 2.
>> Take money out of your Trad IRA for medical expenses,
>> including health insurance premiums. You will meet the
>> exception for no penalty.
>
> Only for the amount above 7.5% of AGI.
Assuming unreimbursed medical expenses exceed 7.5% of AGI,
then you mean there is no penalty on that part of the Trad
IRA distribution equal to [Actual Med Expenses - 7.5% AGI].
Or put another way, a 10% penalty is imposed on [TIRA
distribution - (Actual Med expenses - 7.5% AGI)].
If this is what you meant, you are right. I could not figure
out what you were saying without laying it out like this.
And to be clear (not to you, since I think you know this,
but for the archives), one does not have to be able to
itemize deductions to use this exception to the penalty rule
for early IRA distributions.
>> 4.
>> Also, one time only, a person can roll money directly
>> from a Trad IRA to an HSA, limited to one year's maximum
>> allowed HSA contribution.
>
>
> Good point. Still doesn't help with health insurance
> premiums, though.
You are right, though I expect with kids the dental and
other medical costs could add up, though.
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