My Wife and I are currently unemployed can i get a distribution from an Traditional IRA without penalty? We borrowed 42K to pay for our home mortgage, health coverage.

sarki520 — Thu, 06 Jun 2019 05:45:41 GMT

We borrowed 42K from a traditional IRA to help pay for our home mortgage, health care coverage as well as day to day expenses. Unemployment lasted only 4 months but I was unemployed for 2 of the months in 2015. Is it fair to get get penalized for paying for your home and health coverage with your 401K money that you earned.

Here are some exceptions to the early distribution penalt...

BMcCalpin — Thu, 06 Jun 2019 05:45:43 GMT

Here are some exceptions to the early distribution penalty from an IRA:

1. that part of the distribution that went to health insurance premiums paid while unemployed

2. that part of the distribution that went to cover the amount of unreimbursed medical expenses over a certain percentage (>7.5% AGI; after 2012, 10% if under age 65)

3. that part of the distribution that went to help buy your first home, up to $10,000. Note that this requires that you not have lived in your own home for at least 2 years.

The entire list can be found at the IRS website.

topic Here are some exceptions to the early distribution penalt... in Retirement tax questions

My Wife and I are currently unemployed can i get a distribution from an Traditional IRA without penalty? We borrowed 42K to pay for our home mortgage, health coverage.

Here are some exceptions to the early distribution penalt...