Mailbag Q&A: Early Distributions, Back-door Roth Conversions and More

By Sarah Brenner, JD, IRA Analyst 

Question: A tax payer lost his job in March. If he took an early distribution of $30,000 to live on and pay about $12,000 in medical expenses and insurance, will he be able to reduce the $3,000 tax penalty? His AGI will be about $40,000. 


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