[NJ Gene]

Originally Posted by Jerry5

If we take the money from a retirement account, this is not put back in before sixty days...I asked them to send me the date I asked for reimbursement, hopefully the IRS will accept this, the money will be put back in...
Next, the amount that is not reimbursed, say $7500, can I deduct this and not include this as 'income', or add this to the income, and pay all the extra taxes?

Jerry, one of the exceptions to the 10% premature penalty for IRA distributions is for medical reasons. Forget about repaying the IRA in 60 days, you don't need to do that. The money you take out of your IRA has to be taxed as ordinary income. However, whatever you spend on medical will also be deductible on schedule A (to the extent it exceeds 10% of your adjusted gross income). So it's basically a wash. Bottom line, you can get money from your IRA to pay for your medical costs. Clearly your health and well being are the most important things to consider. I do have to caution you that taking money out of your retirement savings can have major consequences later in life unless you make up for it somehow. Check out the following link: Retirement Topics - Exceptions to Tax on Early Distributions