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SR Client Question: Can I withdraw from my IRA to cover medical expenses?

medical expenses [1]Typically, withdrawing from your IRA or 401(k) early means big penalty charges.  However, there are two medical exceptions to the “early distribution penalty” (10% penalty for early distributions from an IRA, or other qualified pension plan):

 1.      Distributions due to total and permanent disability. You are considered disabled if you can furnish proof that you cannot do any substantial gainful activity because of your physical or mental condition. A physician must determine that your condition can be expected to result in death or to be of long, continued, and indefinite duration.

 2.      Qualified retirement plan distributions up to the amount you paid for unreimbursed medical expenses during the year minus 10% (or 7.5% if you or your spouse are age 65 or older) of your AGI.

 If you think you may qualify for an early distribution from your retirement plan for medical expenses, check with your ShindelRock professional.