No. of Recommendations: 0
When you say the "accountant charged me 10%"... did you mean:
He made me pay estimated taxes?
He had the financial institution pay you 90% and withhold 10% (the default withholding amount and still probably not enough)
He filled out a form and reported the 10% penalty withdrawal.


I just looked at p 34 of IRS Publication 590 located at

unreimbursed medical expenses must exceed 7.5% of adjusted AGI to be eligible for the penalty exception.

Therefore if your AGI is more than $106,666 (x7.5%=$8000), the distribution is taxable with an additional 10% penalty attached.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.