Ira Dist. For Medical

[BOB W]

I have a client who became totally disabled. He and his wife are under 59 1/2. Each took distributions to cover living expenses and some medical bills.

It appears that his distribution are penalty free under the exception of "totally disabled".
My question relates to the wife. Does her IRA distribution take on any family attribute since her husband is totally disabled or does her distribution not qualify for an exception with regards to the IRA penalty on her.

And can family (husband's) medical expenses exception be used against her distributions.

[Lion]

No and maybe

Pretty certain it's a No on the wife avoiding penalty due to husband's disability. Had a couple where wife was disabled and husband was partially disabled, so had researched. But, they haven't been clients for years, so don't know exactly where I found info.

I don't know re using family medical expenses to avoid penalty for wife, but I seem to remember Yes on a MFJ return, so do keep researching that area.

[BOB W]

Pretty certain it's a No on the wife avoiding penalty due to husband's disability. Had a couple where wife was disabled and husband was partially disabled, so had researched. But, they haven't been clients for years, so don't know exactly where I found info.

I don't know re using family medical expenses to avoid penalty for wife, but I seem to remember Yes on a MFJ return, so do keep researching that area.

Thanks Lion> I agree on wife's/ husband's IRA is a stand alone issue. I will keep researching "Family" side of this issue. Problem may come in with penalty relief on wife's IRA as medical expense has to be in excess of 7.5% of AGI and the expense is for husband's medical bills. So this client's issue may be a mute point (not in excess of 7.5% of AGI). But would like to know anyway, if "Family" is covered for anyone's IRA distribution for penalty relief.