Steven Is 27 Years Old and Has a Total AGI

question 78

Multiple Choice

Steven is 27 years old and has a total AGI of $110,000 in 2016. He contracts pneumonia in 2016 and incurs a medical bill that totals $7,500. He withdraws $7,500 from his traditional IRA to pay the bill. Which of the following is true?

• A)He is not subject to penalties on the IRA withdrawal because it was for medical expenses.
• B)He is not subject to penalties on the IRA withdrawal because he was disabled by pneumonia for 2 weeks.
• C)He is subject to penalties on the IRA withdrawal because a person may not take a withdrawal from a traditional IRA until they are 59 ½ years old no matter what.
• D)He is subject to penalties on the IRA withdrawal because the withdrawal did not cover a portion of medical bills that exceeded 10 percent of his AGI.
• E)None of the above is correct.

---

Definitions:

Sincerity

The quality of being free from pretense, deceit, or hypocrisy.

Technical Information

Detailed and specialized knowledge related to scientific, engineering, or other technical fields.

Jargon

Specialized language used by a particular profession, group, or culture, often difficult for outsiders to understand.

Social Acceptance

The condition in which an individual's behaviors, values, and appearance are welcomed or approved by a social group or society at large.