Retirement tax questions


 

@ashutoshsharmaindia , look at this chart.

https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-exceptions-to-tax-o...

 

The bottom item says "medical insurance you paid for while unemployed, if you were unemployed for at least 12 weeks".  In the middle, there are two listings under Medical.  One says, "health insurance premiums paid while unemployed".  (I'm curious about why there are two different rules for medical insurance premiums that are basically the same but slightly different, I guess Congress was just mucking around with the tax code one day.)

 

However, also under medical it says "amount of unreimbursed medical expenses (>7.5% AGI)."

 

What this means is that money you withdrew to pay premiums is exempt from the penalty, but money you withdrew to pay other medical expenses (like prescriptions and co-pays) are only exempt after your total medical expenses exceed the 7.5% AGI threshold.   I presume Turbotax asks the right questions to figure this out.