A 40 -year-old freelancer contributes $⁢5,000 annually to a traditional IRA. They withdraw $⁢2,000 to cover unreimbursed medical expenses. What are the taxes and penalties on this withdrawal?

Question

Revolt · Accepted Answer

200 dollars penalty and taxed as regular income

N/A — Exam

A 40 -year-old freelancer contributes $⁢5,000 annually to a traditional IRA. They withdraw $⁢2,000 to cover unreimbursed medical expenses. What are the taxes and penalties on this withdrawal?

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