BillM223
Expert Alumni

Retirement tax questions

The IRS says, in the case of "total and permanent disability of the participant/IRA owner", then you can withdraw from either an IRA or a 401(k) without the early distribution penalty. See this IRS webpage.

 

If anyone ever asks (like in an audit or by letter), you need to be prepared to prove "total and permanent disability of the participant/IRA owner".

 

Also, note that the distribution code on your 1099-R may or may not cause the distribution to be subject to the 10% early distribution penalty. So when you are entering the 1099-R, watch the screens after you start this to find the opportunity to assert your exception.

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