Steven Is 27 Years Old and Has a Total AGI

question 35

Multiple Choice

Steven is 27 years old and has a total AGI of $110,000 in 2017.He contracts pneumonia in 2017 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.

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Definitions:

Disgust

An emotional response of revulsion or strong disapproval evoked by something unpleasant or offensive.

Physiological Differences

Variations in the biological functions and processes of organisms, which can be influenced by genetics, environment, and lifestyle.

Cognition

Gaining awareness and understanding by engaging in thought, experiencing events, and through sensory detection.

Parasympathetic Nervous System

Part of the autonomic nervous system responsible for conserving energy as it slows the heart rate, increases intestinal and gland activity, and relaxes sphincter muscles in the gastrointestinal tract.