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posted Nov 2, 2021 1:22:45 PM

Do you include a physician's letter with your tax return if you use Form 5329 for a disability exemption?

People who are fully disabled are allowed to take disbursements from their IRA or similar account without the 10% penalty for early withdrawal (before age 59-1/2). Form 5329 is how you take that exemption.
 
Some financial institutions will look at a physician's statement or other documentation of your disability and then issue a 1099-R, others (like mine) do not

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2 Replies
Level 15
Nov 2, 2021 1:25:27 PM

Do not add anything to a paper filed return when mailing it  ... the data input operator will not even look at it so just keep it incase you are audited.  

Level 15
Nov 2, 2021 2:12:30 PM

I'm not sure what you're saying about the 1099-R. You will get a 1099-R for any IRA distribution. If the distribution code in box 7 of the 1099-R is 2 there will be no 10% penalty and you do not need Form 5329. If the distribution code in box 7 of the 1099-R is 1 you need Form 5329 to claim an exception to the 10% penalty.


In any case, as Critter-3 said, do not include any additional documentation with your tax return. If the IRS wants additional information they will send you a letter asking for it.