MDFTAX
Level 3
3 weeks ago
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Dear Community,
My clients' took early Retirement distributions to cover their children's adoption, education costs and pay their prior tax liabilities.
The distribution code is 1 - distribution is not exempt.
However, my clients' took out the funds for purposes that qualify for the distribution to be exempt from the 10% penalty.
What kind of documentation would you request to support the expenses?
Thanks in advance!
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