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No, If you took a distribution from your 401(k) or another qualified retirement plan (excluding IRAs) before you turned 59 1/2, you'll pay a 10% early withdrawal penalty, with a few exceptions:
Exceptions to Tax on Early Distributions - See this link for a full list of plans and exceptions allowed.
A person is permanently and totally disabled if both of the following apply:
This information is found in Publication 501, Dependents, Standard Deduction, and Filing Information.
Adding to this, the SSA and the IRS make separate determinations regarding disability. Just because you are on SS disability doesn't necessarily mean that your circumstances qualify you for the disability exception to an early-distribution penalty. You must provide supporting documentation to the IRS to show that you meet the IRS's disability requirements that DawnC listed.
Thank you. I do meet the requirements, so do I need to file a separate form?
The exception can be claimed with code 03 on line 2 of Form 5329. TurboTax does this automatically when you indicate in the questions following clicking the Continue button on the Your 1099-R Entries page the amount that qualifies for this exception by entering it in the Permanent disability box.
As for the supporting documentation, you can either provide the letter from your doctor if the IRS questions your use of this exception or you can include that letter and explanation with your mailed tax return.
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