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Author: Bobbcat Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75781  
Subject: Re: HELP: IRA EARLY DISBURSMENT Date: 9/7/2000 6:44 PM
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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.

-----------------------------------
Anyway,

I just looked at p 34 of IRS Publication 590 located at www.irs.gov

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.

*Cat
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