need to withdraw from rollover IRA. Im 54 yo & have been on disability since 2019. Any way to skip the 10% penalty? any limits on many times I can withdraw per year ?

[CharlieSol]

my only income and is SSDI and it’s almost $40,000 per year. I have some money in my brokerage accounts, not a lot

[TomD8]

This IRS reference details the exceptions to the10% early withdrawal penalty:

https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-exceptions-to-tax-o...

[rjs]

You can withdraw from your IRA as many times as you want. All that matters is the total amount that you withdraw during the year. It makes no difference whether you make one big withdrawal or a lot of small withdrawals.

In the IRS information that TomD8 referred you to, note that total and permanent disability is one of the exceptions to the 10% penalties. See IRS Publication 590-B for the details of what is considered disabled for IRA withdrawals.

[CharlieSol]

Thank you very much to both of you! 
Should I communicate re my disability next year when I’m filing taxes? If yes, does Intuit have experts for helping re this matter? 
or should I communicate before withdrawal? 

[CharlieSol]

Thank you!!! ☺️ 

[rjs · Accepted solution]

I'm not sure what you mean by "communicate" or who you think you have to communicate with. You don't have to send the IRS any information about your disability with your tax return or ahead of time. If you meet the definition of disabled in Publication 590-B you will just indicate on your tax return that the withdrawal was because of disability. Your tax return will include Form 5329 showing the reason for the withdrawal and eliminating the 10% penalty. If the IRS wants any more information, such as proof of your disability, they will send you a letter asking for it. You should obtain written proof of your disability and keep it with your tax records in case the IRS asks for it.