IRA withdrawal another reason
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New Member

IRA withdrawal another reason

I took an early withdrawal from my IRA to pay off an IRS bill and some credit card debt.  I entered the information from my 1099r.  I am now on the page titled "Did you use your IRA to pay for any of these expenses?"  Do I enter the withdrawal amount under Another Reason?
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New Member

IRA withdrawal another reason

No.  Pay off of debt is not a use that will exclude your early withdrawal from the penalty tax.

The question is asking if you used the funds you withdrew for the specific purposes listed because if you used the funds for the specific purposes listed, you may qualify for an exemption from the penalty tax for an early withdrawal from a retirement account.
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