Jump to content

Hardship Withdrawal for Health Insurance Premium?

Recommended Posts

Health insurance premiums for a partner in a partnership are paid by the partner and deducted on his personal return. Does the fact that this expense is classified as deductible by IRC Section 213(d) make it hardship withdrawal-eligible? Assuming that all the other requirements are met. And if not eligible, what specifically excludes it?



Link to comment
Share on other sites

Code and regs refer to expenses deductible under 213(d):

(d)DefinitionsFor purposes of this section—

(1)The term “medical care” means amounts paid—
for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting any structure or function of the body,
for transportation primarily for and essential to medical care referred to in subparagraph (A),
(C )
for qualified long-term care services (as defined in section 7702B©), or
for insurance (including amounts paid as premiums under part B of title XVIII of the Social Security Act, relating to supplementary medical insurance for the aged) covering medical care referred to in subparagraphs (A) and (B) or for any qualified long-term care insurance contract (as defined in section 7702B(b)).
In the case of a qualified long-term care insurance contract (as defined in section 7702B(b)), only eligible long-term care premiums (as defined in paragraph (10)) shall be taken into account under subparagraph (D).
Link to comment
Share on other sites

A immediate and heavy financial need - the very definition works against a planned and regular premium. Also, what happened cannot be covered by loans or other outside assets to be a hardship. A planned premium just doesn't make it (in my opinion of course). Strong opinion to follow.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Create New...