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.