They are both under 591/2.

I have completed Form 5329 with code 05 included which is an exception to the 10% early withdrawal penalty as the amount the spouse paid from her paychecks and other out-of-pocket expenses paid by both of them met the Medical exception which states the following:

amount of unreimbursed medical expenses must be greater than 10% of AGI..

Thus the 10% tax is eliminated.