Solved: Can I include Cobra insurance payments as part of the 7.5% of AGI needed to qualify for exception? (early 401 cash out)
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Can I include Cobra insurance payments as part of the 7.5% of AGI needed to qualify for exception? (early 401 cash out)

 
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Can I include Cobra insurance payments as part of the 7.5% of AGI needed to qualify for exception? (early 401 cash out)

If the Cobra payments were paid for by you with after-tax dollars (likely so), then yes, they qualify as medical expenses that are deductible on Schedule A (where the 7.5% floor is). That would also make them eligible to be used in the exception to the 10% early distribution penalty..

See https://ttlc.intuit.com/replies/5642263

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Level 13

Can I include Cobra insurance payments as part of the 7.5% of AGI needed to qualify for exception? (early 401 cash out)

If the Cobra payments were paid for by you with after-tax dollars (likely so), then yes, they qualify as medical expenses that are deductible on Schedule A (where the 7.5% floor is). That would also make them eligible to be used in the exception to the 10% early distribution penalty..

See https://ttlc.intuit.com/replies/5642263

View solution in original post

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