IRA 10% Penalty Exception for Medical bills

[AZ-Tax]

TTB 13-3 Distribution from a qualified retirement plan to pay for unreimbursed medical expenses during the year to the extent they exceed 7.5% of AGI, regardless of whether or not the participant itemizes
deductions.

Assuming the TP does NOT itemize and has $8K of unreimbursed qualified medical expenses on a $100K of AGI. $5K of the $8K came from IRA early withdrawal therefore NO 10% penalty on that full $5K IRA withdrawal, correct?

[Davc]

TTB 13-3 Distribution from a qualified retirement plan to pay for unreimbursed medical expenses during the year to the extent they exceed 7.5% of AGI, regardless of whether or not the participant itemizes
deductions.

Assuming the TP does NOT itemize and has $8K of unreimbursed qualified medical expenses on a $100K of AGI. $5K of the $8K came from IRA early withdrawal therefore NO 10% penalty on that full $5K IRA withdrawal, correct?

No. As per your first paragraph. 100,000 x 7.5% = 7,500. 8,000 - 7,500 = 500 which is the amount not subject to the penalty.

[Roberts]

No. As per your first paragraph. 100,000 x 7.5% = 7,500. 8,000 - 7,500 = 500 which is the amount not subject to the penalty.

I'd agree.