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posted May 31, 2019 9:24:54 PM

Can i deduct "Health Insurance Premiums for Unemployed (from IRA)" for 2016 Cobra payments that were paid from a 2016 early IRA distribution?

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1 Best answer
Level 9
May 31, 2019 9:24:56 PM

f your COBRA premiums were paid out-of-pocket, they are a medical expense that you can deduct as an itemized personal deduction on Schedule A, subject to the 10% threshold on medical expenses. In addition, you will not have to pay the 10% early withdrawal penalty on the IRA distributions that were used to pay these premiums.  You still have to pay regular income tax on the IRA distribution, regardless of how the funds are used.


1 Replies
Level 9
May 31, 2019 9:24:56 PM

f your COBRA premiums were paid out-of-pocket, they are a medical expense that you can deduct as an itemized personal deduction on Schedule A, subject to the 10% threshold on medical expenses. In addition, you will not have to pay the 10% early withdrawal penalty on the IRA distributions that were used to pay these premiums.  You still have to pay regular income tax on the IRA distribution, regardless of how the funds are used.