KrisD
Intuit Alumni

Retirement tax questions

{added 3-15-17} Please refer to the IRS definition of disability. 

That could qualify as an exception to the penalty.

According to the IRS:

"There are several exceptions to the age 59 1/2 rule. Even if you receive a distribution before you are age 591 2, you may not have to pay the 10% additional tax if you are in one of the following situations.


You are totally and permanently disabled.


Disabled. If you become disabled before you reach age 59 1/2, any distributions from your traditional IRA (or 401k) 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."


https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distri...