My wife had to retire for medical reasons. We cashed out her IRA, had 20% held out for Fed. taxes but am getting hit with the 10% early penalty. She is in the process of filing for Social Security disability. We don't have enough medical expenses to file above the 10% of our AGI. Is there any other options to eliminate the early withdrawal tax? If we have to pay, can we get it back next year if we have a doctors letter of disability?
