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Retirement tax questions
If your total income is, for example, $100,000, then the only expenses eligible for the penalty exception are expenses more than $7500 (more than 7.5% of your income). If your expenses are less than 7.5% of your income, then you are not eligible to exclude the penalty for early withdrawal, even if you used the withdrawal for medical expenses.
‎February 4, 2026
12:02 PM