M-MTax
Level 12

Retirement tax questions

To the best of my knowledge, the beneficiary can't list medical expenses as itemized deductions on their schedule A except to the extent they paid tax on interest. 

You're misinformed. Whether it comes from taxable interest..... or any other type of taxable income......... or from corpus it becomes the beneficiary's money and a medical expense would be potentially deductible for the beneficiary.