Can I claim early ira withdrawal used for Permanent Disability since I used the funds to pay my living expenses until I was officially granted SSA Disability in April ‘17
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Can I claim early ira withdrawal used for Permanent Disability since I used the funds to pay my living expenses until I was officially granted SSA Disability in April ‘17

 
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Can I claim early ira withdrawal used for Permanent Disability since I used the funds to pay my living expenses until I was officially granted SSA Disability in April ‘17

The ten percent (10%) penalty for early withdrawal from your IRA can be eliminated for total and permanent disability of the participant/IRA owner. Even though you didn't receive the social security disability officially until 2017, you can use that as your reason for taking the money early. The IRA will still be taxable, but the penalty can be eliminated.

When you enter the Form 1099R watch for the questions about the exceptions for your IRA.  Click the image attached to enlarge and view for assistance.

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