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New Member
posted Apr 19, 2021 10:19:52 AM

Paid medical expenses with money withdrawn from IRA with fidelity investment. can deduct from taxable amount?

did not receive receive response that fit my question.  gonna rephrase.  Withdrew money from IRA fidelity account to pay medical expenses.  Can i reduce the amount that taxable on federal taxes for 2020?

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1 Replies
Expert Alumni
Apr 19, 2021 2:12:41 PM

You cannot exempt the distribution from federal income tax, assuming it is otherwise taxable. You would only be able to exempt a penalty for early withdrawal to the extent the medical bills were more than 7.5% of your adjusted gross income.