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olalowogm
April 11, 2025
Solved

Does using my rollover IRA early distribution to pay for cost of life insurance qualify for exception to reduce early withdrawal penalty?

  • April 11, 2025
  • 1 reply
  • 0 views
The code on box 7 of my 1099-R is 1 (normal distribution). I used the distribution to buy insurance. When TurboTax asks "Did you use your IRA to pay for any of these expenses?" in the Other Tax Situations section, should I choose "Another Reason" or "Incorrect Early Distributions"?
    Best answer by dmertz

    Using the distribution to pay for life insurance is not an exception to the early-distribution penalty.

    1 reply

    D
    dmertzAnswer
    April 11, 2025

    Using the distribution to pay for life insurance is not an exception to the early-distribution penalty.

      O
      olalowogmAuthor
      April 12, 2025

      Thank you.

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