After being disabled last May my employment ended in August. I withdrew money from my IRA to pay for health insurance through the end of the year. Help!

guy28 — Tue, 10 Feb 2026 09:38:35 GMT

Re: After being disabled last May my employment ended in August. I withdrew money from my IRA to ...

Vanessa A — Tue, 23 Jan 2024 20:10:24 GMT

If you were permanently and totally disabled, this would be considered an exception to the 10% penalty on early withdraw.

If you were just temporarily disabled and took it out to pay health insurance, then the amount that is greater than 7.5% of your income would be excluded from the penalty, but the rest would be penalized.

Some or all of it, whether or not it is excluded from the penalty may be included in your taxable income, depending on how long you have had it and the amount of the distribution that was earnings vs what you contributed.

The best thing to do is to walk through the steps of entering your 1099-R into TurboTax and answer the questions carefully. As you continue through it will ask you about exclusions and will determine, based on your entries, what about is taxable. To enter your 1099-R select the following

Income
Show more next to Retirement Income
Start next to 1099-R

TurboTax will walk you through the same steps with the state. State rules do vary greatly.

topic After being disabled last May my employment ended in August. I withdrew money from my IRA to pay for health insurance through the end of the year. Help! in Retirement tax questions

After being disabled last May my employment ended in August. I withdrew money from my IRA to pay for health insurance through the end of the year. Help!

Re: After being disabled last May my employment ended in August. I withdrew money from my IRA to ...