Question

If you are under 59 % and you withdraw money from your traditional IRA, which of the following is the exception to the additional penalty tax?

Choose one answer.
a. You are disabled
b. You have unreimbursed medical expenses that are more than 7.5% of your AGI
c. You are the beneficiary of a deceased IRA owner
d. All of these
e. None of these

Answer 1

A-You are disabled

Step-by-step explanation:

If you're disabled, you can withdraw IRA funds without penalty. If you pass away, there are no withdrawal penalties for your beneficiaries. You can avoid an early withdrawal penalty if you use the funds to pay unreimbursed medical expenses that are more than 7.5% of your adjusted gross income (AGI).