☰
✕
Sign In

Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 1
posted Apr 11, 2025 11:29:53 AM

Does using my rollover IRA early distribution to pay for cost of life insurance qualify for exception to reduce early withdrawal penalty?

The code on box 7 of my 1099-R is 1 (normal distribution). I used the distribution to buy insurance. When TurboTax asks "Did you use your IRA to pay for any of these expenses?" in the Other Tax Situations section, should I choose "Another Reason" or "Incorrect Early Distributions"?

0 2 1507
1 Best answer
Level 15
Apr 11, 2025 12:18:55 PM

Using the distribution to pay for life insurance is not an exception to the early-distribution penalty.

2 Replies
Level 15
Apr 11, 2025 12:18:55 PM

Using the distribution to pay for life insurance is not an exception to the early-distribution penalty.

Level 1
Apr 12, 2025 10:15:33 AM

Thank you.