AboutAllen Expertise Pension questions ONLY. Pension, profit sharing, and 401(k) plan design, installation, administration and actuarial services; rollovers to Individual Retirement Accounts; taxation of retirement plan distributions
Experience Over 35years experience in the pension field
Organizations Various actuarial organizations
Education/Credentials MBA and various professional certifications
Question I'm retired at 63 and will need health insurance until i receive medicare - if I withdraw money from an IRA I rolled over from a 401K this year - 1st is this allowed- is there some law that states you can't use rollover money for 1 year and is it allowable to deduct the cost of out of pocket health premiums? Also can I use IRA funds to pay premiums and not pay taxes on this?
Answer There is a one year restriction on changing the financial institution where you have an account. However, there is no restriction on withdrawing the money.
Unfortunately, you will have to pay income tax on any withdrawal from the IRA. There is no exception.
