Problem: My father is in a nursing home so has had significant medical expenses this year. Should we take money out of his IRA now to equal his medical expenses?

Solution: Probably, says Francis J. Niehaus, a Price Hill lawyer and certified financial planner.

The deductibility of medical expenses as an itemized deduction often offers an opportunity for year-end planning. If your father's medical expenses total $50,000 and his only income was $12,000 of Social Security and $6,000 of interest, he has room to take about $33,000 from his IRA without any tax due.

The $33,000 could also be from other sources, such as an annuity or capital gains from a stock sale. Without the medical deduction, this withdrawal would cost a single taxpayer over $8,000 in federal tax, plus state income tax.

With an IRA, fears about the exact amount to be withdrawn are allayed by the fact that IRS provides a 60-day window to roll money back into an IRA without tax.If the IRA distribution is made Dec. 16 and preparation of the tax return happens Feb. 1, time remains to put the money back into the IRA by Feb. 14. Even without medical expense deductions, an individual should do a year-end assessment of taxable income. Opportunities may exist for tax-free withdrawals from a traditional IRA or conversions from a traditional IRA to a Roth IRA.

Converting to a Roth IRA can offer a lifetime of tax-free growth and should be considered if an individual is under age 70‡, or, if over 70‡, has already taken an amount equaling his required minimum distribution. Because recharacterizations of Roth conversions back to the traditional IRA can happen until April 15, ample time for planning exists.

Readers: Consider Savvy Strategies as general information only and seek the help of professionals because circumstances might vary. Planners: Share your unique tips with Enquirer readers. Send your Savvy Strategies to Amy Higgins, 312 Elm St., Cincinnati, OH 4520,2 or e-mail ahiggins@enquirer.com.