Steven is 27 years old and has a total AGI of $110,000 in 2017.He contracts pneumonia in 2017 and incurs a medical bill that totals $7,500.He withdraws $7,500 from his traditional IRA to pay the bill.Which of the following is true?
A) He is not subject to penalties on the IRA withdrawal because it was for medical expenses.
B) He is not subject to penalties on the IRA withdrawal because he was disabled by pneumonia for 2 weeks.
C) He is subject to penalties on the IRA withdrawal because a person may not take a withdrawal from a traditional IRA until they are 59 ½ years old no matter what.
D) He is subject to penalties on the IRA withdrawal because the withdrawal did not cover a portion of medical bills that exceeded 10 percent of his AGI.
E) None of the above is correct.
Correct Answer:
Verified
Q17: A taxpayer who is under 50 years
Q28: If a Section 401(k) plan allows an
Q59: Which of the following statements is false
Q61: What is the maximum amount a 30-year-old
Q62: Wilson and Joan,both in their 30s,file a
Q63: Debbie is 63 years old and retired
Q66: Jeremy,age 38,has $25,000 in a traditional IRA
Q67: Contributions by a self-employed individual to a
Q68: Barrett is a 45-year-old political commentator who
Q69: Rob and Julie,both in their 30s,file a
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents