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How to get back extra early 10% withdrawal from IRA due to permanent disability
Thank you,
Ron S.
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Retirement tax questions
Enter a 1099-R here:
Federal Taxes,
Wages & Income
I’ll choose what I work on (if that screen comes up),
Retirement Plans & Social Security,
IRA, 401(k), Pension Plan Withdrawals (1099-R).
OR Use the "Tools" menu (if online version under My Account) and then "Search Topics" for "1099-R" which will take you to the same place.
Be sure to choose which spouse the 1099-R is for if this is a joint tax return.
Be sure to pick the correct 1099-R type: Standard 1099-R, CSA-1099-R, CSF-1099-R, RRB-1099-R.
[NOTE: When you get to the "Your 1099-R Entries" screen where you can add another 1099-R, use "continue" to keep going as there are additional interview questions after that screen in most cases. You can always return as shown above.]
There will be a screen that says "Lets see if we can reduce your penalty? " Permanent disability is on the list if you qualify.
"Disabled. If you become disabled before you reach age 59½, any distributions from your traditional IRA because of your disability are not subject to the 10% additional tax.
You are considered disabled if you can furnish proof that you cannot do any substantial gainful activity because of your physical or mental condition. A physician must determine that your condition can be expected to result in death or to be of long, continued, and indefinite duration."
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Retirement tax questions
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I understand your post but how do you actually provide information from a doctor? Do you have to have your doctor right a letter and then attach it to your tax return? Is there a format for the letter? I assume the doctor is going to ask how they need to write the letter.
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Retirement tax questions
@Bbinder2002 wrote:
I understand your post but how do you actually provide information from a doctor? Do you have to have your doctor right a letter and then attach it to your tax return? Is there a format for the letter? I assume the doctor is going to ask how they need to write the letter.
See IRS Pub 524, page 8 for a sample physicians statement that you should have for your records but only submit to the IRS if they ask for it.
https://www.irs.gov/pub/irs-pdf/p524.pdfhttps://www.irs.gov/pub/irs-pdf/p524.pdf