If I was recently deemed permanently 100 percent disabled from both the Veteran's Administration and the Social Security Administration. I only made $1200 of taxable income in 2017, but I am married filing jointly and my husband is gainfully employed. Can I withdrawal the balance of my Roth IRA and Thrift Savings plans without penalty? The total amount would be below $10k.
You'll need to sign in or create an account to connect with an expert.
The IRS makes its own determination as to whether you are considered disabled for the exception to the early-distribution penalty from these accounts. VA and SSA disability statuses are determined differently.
From IRS Pub 590-B:
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.
The penalty only applies to the taxable portions of distributions from your Roth IRA or TSP. From your Roth IRA, your original contributions are distributed first tax and penalty free regardless of the reason for the distribution. Distributions from your TSP would typically be entirely taxable and subject to the early-distribution penalty unless a penalty exception applies.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
guyj706836
New Member
daschw777-aol-co
New Member
wstalnaker22
New Member
danatherose1
New Member
wigg223554
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.