i needed and used the money to support my kids and pay household bills. i was not ever released from a doctors care to return to work. at that time i had already applied for social security but it had not yet been determined.
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You may. A disabled person can take distributions from both 401(k) plans and IRAs without
being subject to the 10% early withdrawal penalty. A disabled individual,
for this purpose, is one that is “unable to engage in any substantial
gainful activity by reason of any medically determinable physical or
mental impairment which can be expected to result in death or to be of
long-continued and indefinite duration.”
The IRS requires proof of disability for this penalty exemption. Substantiating documentation from a physician should be obtained.
After you have entered all of your 1099 R forms in to TurboTax, there are a series of questions asked to determine if you owe a penalty tax on an early withdrawal from a retirement account. Note that the penalty exclusion list is different for pension plans, 401ks and annuities than it is for IRAs.You may. A disabled person can take distributions from both 401(k) plans and IRAs without
being subject to the 10% early withdrawal penalty. A disabled individual,
for this purpose, is one that is “unable to engage in any substantial
gainful activity by reason of any medically determinable physical or
mental impairment which can be expected to result in death or to be of
long-continued and indefinite duration.”
The IRS requires proof of disability for this penalty exemption. Substantiating documentation from a physician should be obtained.
After you have entered all of your 1099 R forms in to TurboTax, there are a series of questions asked to determine if you owe a penalty tax on an early withdrawal from a retirement account. Note that the penalty exclusion list is different for pension plans, 401ks and annuities than it is for IRAs.Still have questions?
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