 |
|
| Browse | Ask | Answer | Search | Join/Login |
|
|
||||
|
Penalty charge for taking out medical money.
My father has $6978 in a card that is used for only medical/doctor visits. If he takes all of the money out, how much does he have to pay back or how much is he going to be charged during his income taxes for using the money for non medical reasons?
|
||||
|
||||
|
If your asking about a Health Savings Account, any withdrawals not used for medical purposes are treated as ordinary income for tax purposes. Since the taxes he would owe to federal and also state/local income it's impossible for me to predict what that amount is. The withdrawal is also subject to a 10% early withdrawal penalty (similar to an IRA) if he is under age 65 and not disabled. That penalty amount is going up to 20% in 2011, so beware. |
||||
| Question Tools | Search this Question |
Add your answer here.
Check out some similar questions!
I am 64 1/2 I am on partial SS and want to know if I will pay any penalty on taking my 401k to pay off a high interest debt or credit card?
Hi, In 2008 I withdrew about $6000 from my IRA to help pay for living expenses and some educational expenses. I was told that I may have to pay a 10%penalty for early withdrawal. However, that was my only source of "income" in 2008 (I have no W2 forms for 2008 as I did not work). I also took out an...
I am going to bn today and I was thinking about picking up Taking Charge of your Fertility. I am Trying to conceive now and was wondering if people would recommend it and why. Thanks!
I am removimg money from my 401k plan & the annuity is assessing me a 8% penalty. Is the IRS going to penalize me as well or is it just categorized as ordinary income?
Hey everyone! Ok, so here's my snag I was wondering if anyone has any idea about, I'd appreciate any comments! So, I parked on double-yellow lines outside my house, like I do every weekend, normally without incident! (I know it's naughty, but I normally get away with it! :p ) Anyway, I...
View more questions Search
|
