Kamila
Peggy KYou'll want to verify this with a CPA, or maybe a beankr, but I believe that if a person is under age 59 1/2, they can pull out funds from their IRA or 401k to pay medical bills (but don't go over this amount plus whatever federal withholding you need to apply to it) without paying the penalty for early withdrawal. There will still need to be federal withholding taken out of this distribution, too.Then, for that year's taxes, you'd get a 1099R from the company, showing the distribution amount, taxable amount, and the amount of tax withheld. You'd have to show that on the tax return for the year you withdrew it.There are other ways, but this is quickest.
Kamila Peggy KYou'll want to verify this with a CPA, or maybe a beankr, but I believe that if a person is under age 59 1/2, they can pull out funds from their IRA or 401k to pay medical bills (but don't go over this amount plus whatever federal withholding you need to apply to it) without paying the penalty for early withdrawal. There will still need to be federal withholding taken out of this distribution, too.Then, for that year's taxes, you'd get a 1099R from the company, showing the distribution amount, taxable amount, and the amount of tax withheld. You'd have to show that on the tax return for the year you withdrew it.There are other ways, but this is quickest.