Form 5329 - Distributions not subject to additional tax

[TR2022]

Hi,

  One exemption to the additional tax is if you use part of the distribution to pay medical premiums but I can't find any clear explanation on this.  Is this only if you pay COBRA while unemployed or does it include increased premiums on another plan while being unemployed?  I'm guessing it is the former but wanted to make sure I wasn't making the wrong assumption.  I am covered by my wife's plan so technically we are paying part of the premium for my insurance.  If you are able to deduct it, is it only while you are covered by unemployment benefits?  

   Thanks,

      Troy

[Bsch4477]

This exception is available to an IRA owner who has received unemployment compensation payments for 12 consecutive weeks under any federal or state unemployment compensation law during the year in question or the preceding year. Note that this does not apply to 401-K plans. 

[TR2022]

Thanks for the info.  Is it restricted to just COBRA or can you use the difference in premium on a spouse's insurance plan that you are added to?

[Bsch4477]

It applies to any health insurance premium paid for you, your spouse and any dependents.