I'm trying to finish my 2015 return. In 2015, I took a cash withdrawal after being separated/terminated from my employer. I didn't know there was such thing as "hardship" withdrawal at the time. I have applied for social security disability and am still waiting. I was 50 or 51years old at the time. can I get a permanently disabled credit?
When you take a distribution from a retirement plan prior to reaching age 59 1/2 you are subject to an early withdrawal penalty.
There are a number of exceptions that allow taxpayers relief from that penalty.
Please see the notes associated with exception #3
#. – Exception Description
01 Qualified retirement plan distributions (does not apply to IRAs) you receive after separation from
service when the separation from service occurs in or after the year you reach age 55
(age 50 for qualified public safety employees).
02 Distributions made as part of a series of substantially equal periodic payments (made at least
annually) for your life (or life expectancy) or the joint lives (or joint life expectancies) of you and
your designated beneficiary (if from an employer plan, payments must begin after separation
03 Distributions due to total and permanent disability.
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 medical determination
that your condition can be expected to result in death or to be of long, continued, and indefinite
duration must be made.
04 Distributions due to death (does not apply to modified endowment contracts).
05 Qualified retirement plan distributions up to the amount you paid for unreimbursed medical
expenses during the year minus 10% (or 7.5% if you or your spouse were born before
January 2, 1952) of your adjusted gross income (AGI) for the year.
06 Qualified retirement plan distributions made to an alternate payee under a qualified domestic
relations order (does not apply to IRAs).
07 IRA distributions made to certain unemployed individuals for health insurance premiums.
08 IRA distributions made for qualified higher education expenses.
09 IRA distributions made for the purchase of a first home, up to $10,000.
10 Qualified retirement plan distributions made due to an IRS levy.
11 Qualified distributions to reservists while serving on active duty for at least 180 days.
12 Other (see Other next). Also, enter this code if more than one exception applies
See the following link to Form 5329 for more details: