MDFTAX
Level 3

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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