Justin, age 66, paid $6,000 in qualified medical expenses in 2019 and took an $8,000 Archer MSA distribution during the year. What tax penalty will apply with respect to the excess distribution?

No tax penalty will apply with respect to the excess distribution

Explanation:

Data provided in the question:

Age of Justin = 66 years

Qualified medical expenses in 2019 = $6,000

Archer MSA distribution taken during the year = $8,000

Now,

No tax penalty applies to with respect to the excess distribution for an individual whose age is over 65 years on the records.

Here,

The age of Justin is 66 years i. e over 65 years.

hence,

No tax penalty will apply with respect to the excess distribution