Med Ins Premium Exception – Distrib from Spousal I
L1: Med Ins Premium Exception – Distrib from Spousal IFollow up to previous post:
I have a client that became permanently disabled. He and his spouse decided to take a distribution from the spouse’s IRA.
I know we can”t claimdisability exception to the 10% penalty since the distribution was from the spouse”s IRA, but:
the same disabled person incurred medical insurance premiums out of pocket after losing his job – can we claim exception for medical insurance premiums of an unemployed individual, or do we have the same problem again??
2008-02-22 13:48, By: PERKINSCPA, IP: [18.104.22.168]
L2: Med Ins Premium Exception – Distrib from Spousal ISame problem. The spouse with the IRA is not the disabled taxpayer. The disabled taxpayer doesn”t have the IRA. Too bad.2008-02-22 15:03, By: dlzallestaxes, IP: [22.214.171.124]
L2: Med Ins Premium Exception – Distrib from Spousal ITake a look at IRS Publication 590. Page 53 of the current version http://www.irs.gov/pub/irs-pdf/p590.pdf.
Medical Insurance covers spouse and dependents
Also, if the client has an IRA from which the distribution can be taken, and it still within the 60-day period since the spouse received the distribution, consider whether the spouse can rollover the distribution ( assuming she will not violate the once per 12-month rule) and him taking a distribution from his IRA
2008-03-01 05:05, By: Denise Appleby, IP: [126.96.36.199]