Used IRA distributions to pay for COBRA premiums

Forum|Forum|2 years ago
January 28, 2024
2 replies
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I read this.

And also a similar question like this here.

I am using Turbo Tax Home and Business Desktop edition for Windows.

Had IRA distribution to pay off the COBRA for around 7 months during my unemployment in 2023. Which forms or place I can enter this information to avoid paying 10% penalty. I have provided the same reasoning to the company holding my IRA account and they didn't deducted any penalty or taxes when issuing my 1099-R.

TurboTax Home & Biz Windows

Best answer by MinhT1

The early withdrawal form your IRA to pay for medical insurance premiums while unemployed is one of the exemptions from the early withdrawal penalty.

Please read this TurboTax Help article for more information.

In TurboTax, please follow these steps:

After you have entered all your forms 1099-R, on the summary page Review your 1099-R Info, click Continue
Follow the interview until you arrive at the page titled Did you use your IRA to pay for any of these expenses?
Enter the amount of your Cobra premiums in the box next to Health insurance premiums while unemployed and click Continue
Your early withdrawal penalty will be waived.

Opus 17

Employee

When you enter the 1099-R, turbotax will ask if you have any special situations that qualify for a penalty exception.

MinhT1Answer

The early withdrawal form your IRA to pay for medical insurance premiums while unemployed is one of the exemptions from the early withdrawal penalty.

Please read this TurboTax Help article for more information.

In TurboTax, please follow these steps:

After you have entered all your forms 1099-R, on the summary page Review your 1099-R Info, click Continue
Follow the interview until you arrive at the page titled Did you use your IRA to pay for any of these expenses?
Enter the amount of your Cobra premiums in the box next to Health insurance premiums while unemployed and click Continue
Your early withdrawal penalty will be waived.

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