Discussion:Early IRA withdrawal penalty exception - disability
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Discussion Forum Index --> Tax Questions --> Early IRA withdrawal penalty exception - disability
| 8 April 2007 | |
| Client is 57 years old, had a severe heart attack Feb. 2006. Take money out of his IRA in Nov 2006. Distribution code on 1099 is a "1". Social security deems him fully disabled as of Feb 2006. I believe he should not have to pay the penalty? But how do I tell the IRS this? | |
| 8 April 2007 | |
| Well, I'll answear my own question; Form 5329, I should of know. 1 week to go no brains left. | |
| 8 April 2007 | |
| A heart attack will qualify the client for the exception if he is classified as totally and permanently disabled. This is different than the Social Security definition of disability in that the SSA will compensate for temporary disabilities. | |
| 26 November 2007 | |
| I have a client that wants to pull money out of his IRA. His wife is disabled. Will they qualify for this exception on a MFJ return being that it is his distribution but her disability? | |
Death&Taxes (talk|edits) said: | 26 November 2007 |
| The 5329 is filed separately for each, so I don't see how he would qualify on his 5329 for her problem. This if off the top of my head, but it seems like it stands to reason. | |
| 26 November 2007 | |
| I'm w/ D&T. Distributions "attributable to the employee's being disabled" are not subject to the 10% penalty. Sec. 72(t)(2)(A)(iii). Unfortunately, I don't think the disability of the employee's spouse can be used take the non-disabled spouse's distributions out of the penalty.
Maybe you can look at Sec. 72(t)(2)(B), distributions for medical expenses? | |
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