Early IRA distribution and medical exemption

[tammie]

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.

[IRonMaN]

Check out form 5329

[tammie]

Thank you

[IRonMaN]

You betcha!

[gtissier]

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]

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?

[sjrcpa]

Only ask once https://proconnect.intuit.com/community/proseries-discussions/discussion/10-penalty-exception-for-me...