topic Where do I account for IRA withdrawals for medical expenses? in Deductions & credits

Where do I account for IRA withdrawals for medical expenses?

rd_hoyt — Mon, 23 Feb 2026 12:14:29 GMT

My wife was in a total care facility.
We exhausted Medicare coverage and had to go to self-pay, $10,080 per month, room & board.
I closed her IRA to make a few payments. I then had to take funds out of my IRA.
I am now 67 and my wife was 68. She passed away before my IRA funds were totally used for her medical expenses. I deposited $7,000 (max allowed) back into my IRA account. I still have approx. $12,000 in my savings account that I would like to deposit back into my IRA, without penalty if possible for 2022.

Re: Where do I account for IRA withdrawals for medical expenses?

DanaB27 — Sat, 18 Feb 2023 13:00:11 GMT

Generally, if you are under 59 ½ you can avoid the 10% early withdrawal penalty if you use the IRA funds to pay unreimbursed medical expenses that are more than 7.5% of your adjusted gross income (AGI). But you shouldn’t get the penalty since you both were over 59 ½. If you still get "Did you use your IRA to pay for any of these expenses?" screen, then you can enter the distribution amount under "Another reason" since you are over 59 ½.

Generally, you have 60 days to rollover a retirement distribution (return a retirement distribution). Please see IRS Rollovers of Retirement Plan and IRA Distributions for additional information.

For 2022 the total contributions you make each year to all of your traditional IRAs and Roth IRAs can't be more than:

$6,000 ($7,000 if you're age 50 or older), or
If less, your taxable compensation for the year

Therefore, you won’t be able to make any other IRA contributions for 2022.

Please see Where do I enter my medical expenses? For additional information.

I’m sorry for your loss.

Re: Where do I account for IRA withdrawals for medical expenses?

rd_hoyt — Fri, 24 Feb 2023 21:53:36 GMT

Dana,
Thank you for your condolences.
I am having issues finding the "Another reason" choice. I looked at all IRA choices on the 1099-R form. No joy %-(
What form is it on please?
I understand that I cannot make anymore contributions other than my roll/over/back that I made within 60 days from the distribution.
RD_Hoyt %-)

Re: Where do I account for IRA withdrawals for medical expenses?

MarilynG1 — Fri, 24 Feb 2023 22:47:44 GMT

Exceptions to the Early Withdrawal Penalty for Medical Expenses is entered on Form 5329, Line 1E. Make sure you have already entered your Medical Expenses.

The Medical Expenses Worksheet shows the amount of qualifying expenses on Line 14.

You can enter any amount at least this amount (or more) on Form 5329.

If you're using TurboTax Online, go back to your 1099-R entry in the Retirement Income section and Edit. Continue thru the screens until TurboTax says 'Let's see if we can lower your tax bill'. The next screen lists the Exceptions where amounts can be entered.

If you EDIT your 1099-R entry in TurboTax Desktop, you will see a similar screen.