We got hammered with unexpected medical expenses this year -- bills are still coming in and we are waiting for a total. I understand I can take an early withdrawal from my IRA to pay them AND they would qualify for a penalty exemption. HOWEVER:
1) If, say, our AGI was 50K and our total bills were 6K, only 1K is exempt, is that correct (the "only over 10% of AGI thing)
2) Do I need to do or say anything specific to our IRA holder when taking the withdrawal or do I just submit for a withdrawal? Do they withhold that tax from it and then filing taxes I submit exemption and get a refund or do they just give me the withdrawal and the rest is up to me?
3) Does it matter what tax year the expenses were incurred or just when we set out to pay them (some were incurred in 2017,but we waiting for more and then putting a plan together to to pay it all -- ). So regardless of when we were billed, as long as the IRA withdrawal to pay them is in 2018, then we just file next year for it, coorect?
