Early Distributions from IRAs

Early distributions from IRA’s

Most people know that withdrawals from IRA’s before you reach age 59 ½ are not only taxable, but result in a 10% penalty added to your tax return for the year of distribution.
However, many taxpayers do not realize that certain exceptions apply. You may avoid all or •part of the penalty if:

• You have unreimbursed medical expenses that are more that 7.5% of your adjusted gross income.
• The distributions are not more than the cost of your health insurance.
• You are disabled
• You are the beneficiary of a deceased IRA owner
• You are receiving distributions in the form of an annuity.
• The distributions are not more that you qualified higher education expenses
• You use the distributions to buy, build or rebuild a first home.
• The distribution is due to an IRS levy of the qualified plan.
• The distribution is a qualified reservist distribution

Contact us for more details regarding these exceptions. 913.239.9130 http://www.MCcpas.com


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