Question

I took a withdraw from my ira to support myself through unemployment. is this deductible?

Forum|Forum|4 years ago
April 4, 2022
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Employee

All withdrawals from traditional (pre-tax) IRAs are always subject to regular income tax. In addition, withdrawals before age 59-1/2 are subject to a 10% penalty for early withdrawal, unless you qualify for one of the exceptions.

Unfortunately, general unemployment is not an exception to the 10% penalty. However, if you paid for medical insurance during your period of unemployment, and used IRA funds to pay the premiums, you are exempt from the portion of the IRA withdrawal that was used to pay premiums that are more than 7.5% of your income.