Early Withdrawal of my 403 B

I had 9,000 in a 403 B of which I withdrew after leaving my job as a pastor. I am 58 years old and my wife is 100% disabled. They already kept out state and federal taxes. But does my wife's disability qualify for an exemption from the 10% penalty, or can I claim a hardship after being unemployed for half of the year?

1032

Expert Alumni

Feb 21, 2020 3:58:48 PM

Unfortunately, neither of these will give you an exception to the penalty. However, if you paid health insurance premiums while unemployed, that is a possiblity. Please see the link at the bottom for more information.

Disability

total and permanent disability of the participant/IRA owner

Medical

amount of unreimbursed medical expenses (>7.5% AGI; after 2012, 10% if under age 65)yesyes72(t)(2)(B)
health insurance premiums paid while unemployed

Exception

Level 15

Feb 21, 2020 4:35:01 PM

There is no penalty exception for general hardship, but it seems like the exception for separation from service in or after the year you reached age 55 would apply. I'm surprised that the Form 1099-R did not have code 2, but even if it has code 1 you should be able to claim the age-55 exception.

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Early Withdrawal of my 403 B