I am 54. I want to avoid the 10% penalty on early IRA distributions. How do I prove to the IRS, before taking early distributions, that I am disabled?
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Anonymous
ANSWERS: 4
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Call whomever handles your IRA accounts and ask them. I am not sure about being disabled and how it affects IRAs.
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If there is a disability clause for the 10% early withdraw penalty, you would need to be classified as 100% disabled by the Social Security Administration or the VA if it was service connected.
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Here are several way to legally take Penalty-Free withdrawals. "If a physician determines that, because of a mental or physical disability, you are unable to engage in any gainful employment, you are allowed to take penalty-free distributions from your IRA. Also, the disability must be expected to result in your death or determined to last for an indefinite period. These distributions can be taken for any purpose. Check with your IRA custodian/trustee regarding their policy for handling distributions due to disability, as some require proof of disability in the form of a physician's certification." for more info, see: http://www.investopedia.com/articles/retirement/02/111202.asp
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Look into 72's.
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