Once your granddaughter enters her 1099-R information, the program will prompt her with questions to determine if she qualifies for an exception. Please view the list of possible exceptions to the 10% early withdrawal penalty (IRA) below: Death or total and permanent disability Series of substantially equal periodic payments based on life expectancy Qualified first-time homebuyer distributions up to $10,000 Qualified higher-education expenses Certain medical insurance premiums paid while unemployed Unreimbursed medical expenses that are more than a certain amount of your adjusted gross income IRS levy Certain distributions to qualified military reservists called to active duty

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5400austin

Level 1

Solved

I am working on my Granddauthers taxes. She only earned $3,625 due to various illnesses. She had to withdraw money from her IRA. Is there a way to avoid the early withdrawal penalty?

Forum|Forum|6 years ago
February 5, 2020
1 reply
14 views

No text available

Best answer by KatrinaB48

Once your granddaughter enters her 1099-R information, the program will prompt her with questions to determine if she qualifies for an exception. Please view the list of possible exceptions to the 10% early withdrawal penalty (IRA) below:

Death or total and permanent disability
Series of substantially equal periodic payments based on life expectancy
Qualified first-time homebuyer distributions up to $10,000
Qualified higher-education expenses
Certain medical insurance premiums paid while unemployed
Unreimbursed medical expenses that are more than a certain amount of your adjusted gross income
IRS levy
Certain distributions to qualified military reservists called to active duty

KatrinaB48Answer

Level 15

Death or total and permanent disability
Series of substantially equal periodic payments based on life expectancy
Qualified first-time homebuyer distributions up to $10,000
Qualified higher-education expenses
Certain medical insurance premiums paid while unemployed
Unreimbursed medical expenses that are more than a certain amount of your adjusted gross income
IRS levy
Certain distributions to qualified military reservists called to active duty