Roth IRA

Forum|Forum|4 years ago
March 30, 2022
3 replies
26 views

Hi,

My son requested a disbursement for required Medical work related to his teeth, he used those proceeds to pay for necessary work on his teeth, is it taxable???

bosso3

Level 7

I suggest you refer to

https://www.irs.gov/help/ita/is-the-distribution-from-my-roth-account-taxable

and

https://www.irs.gov/retirement-plans/roth-iras

The latter contains a link to Publication 590-B - which addresses distributions from IRA and Roth IRA.

Also, I presume your son should receive a Form 1099-R from the financial institution which held his Roth IRA. He should enter that data in Turbotax under the Federal Taxes > Wages and Income section.

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MaryK4

Level 15

He would not have to pay tax on any income that is a return of his contribution (what he paid in), only the earnings if it was not a qualified distribution. In addition, there is a 10% penalty for early withdrawal.

He would not have to pay the 10% additional tax on distributions that aren't more than the amount you paid for unreimbursed medical expenses during the year of the distribution, minus 7.5% of your adjusted gross income for the year of the distribution.

You can only take into account unreimbursed medical expenses that you would be able to include in figuring a deduction for medical expenses on Schedule A (Form 1040). You don't have to itemize your deductions to take advantage of this exception to the 10% additional tax.

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