IRA Withdrawal for In Vitro
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Returning Member

IRA Withdrawal for In Vitro

Hi all - 


I took out some money from my IRA (premature distribution) and used the funds to pay for In Vitro related expenses.  Need some help/guidance.  

  1. On IRA 1099R Income section, can I list this as used for "MEDICAL"?  If I do that, then the withdrawal isn't taxable.  
  2. If the answer to #1 is YES, then do I also list the expenses in the medical expense section of Deductions? Would this be ok?
2 Replies
Employee Tax Expert

IRA Withdrawal for In Vitro

When you enter the information from your Form 1099-R and come to the screen asking if the funds were used for medical expenses, the amount that was used to pay for medical expenses over and above 7.5% of your Adjusted Gross Income will be exempt from the 10% early distribution penalty.  The distribution will still be subject to income tax.  The medical exception is for the penalty only.  


If you do qualify to be exempt from the penalty, then you can also deduct the medical expenses as part of your itemized deductions.  This is because the money used to pay the medical expense is being taxed, therefore the expense can be deducted.




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Opus 17
Level 15

IRA Withdrawal for In Vitro

The above answer is incomplete. Unfortunately, under current tax court rulings, expenses for in vitro fertilization are not tax deductible medical expenses if performed so that same sex couples can have children.  It may not be fair, but it is the current law, and Congress will have to change it. If the in vitro expenses were for a heterosexual couple that is unable to conceive normally, then the expenses are tax deductible and also eligible for the IRA withdrawal provision.


remember that all withdrawals from a traditional IRA are always subject to normal income tax. And, in the case of medical expenses, only the part of the expense that is more than 7.5% of your gross income is eligible for the exemption to the 10% early withdrawal penalty.  For example, if your gross income was $80,000, 7.5% of your gross income is $6000.  You could only claim the exemption to the IRA withdrawal penalty for the part of your medical expenses that were more than $6000.

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
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