IRA Rules

Archive for December, 2008

Question: Aren’t IRA distributions for medical expenses and continuing education deductible?

It seems to me that at some point in the past, the “holy” IRA accounts could not be touched without one of four good reasons. I seem to recall first-time home buying as one, medical expenses and continuing education as two others, and the fourth escapes me. That seems not to be the case, as I prepare my 1040 today. Am I going to get hit with income tax plus 10% penalty? (any suggestions where I can find further info myself are welcome).
Thanks.
IRA tax payer

Answer: You may be able to avoid the penalty if you find an exception in publication 590 but you will still pay the taxes. Medical is an itemized deduction if you itemize and it is over 7.5% of your AGI.

Roth IRA and Silver ETF SLV

Adam Bold talks about converting to a Roth IRA

Question: where do I file the distribution f omy Rollover IRA ? ( witch form and witch line ? )?

Answer: You have received a 1099R from the financial institution that rolled the IRA into another IRA. Box 7 will have the code G for rollover. Enter the data from this 1099R exactly as shown into your tax software.

If you do your return manually, enter the distribution on Line 15a of Form 1040 with the word “rollover” immediately to the right of the distribution amount. Enter 0 on Line 15b.

Gold is an excellent form of protection for your IRA and 401K