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Niner
Auburn Fan
Member since Apr 2019
1670 posts

Early IRA Distribution Exception - Disability

I have a client who will be taking early withdrawals from their IRA and must furnish proof to the IRS of their disability to avoid the 10% penalty.

While I continue to research, anyone ever done this? Do they provide proof before they start taking distributions? Do they wait until they file their taxes? I can see the rules everywhere, but none of the mechanics.


Tigerlandlegend2000
Southeastern LA Fan
LAPLACE
Member since Jan 2022
9 posts

Show proof to ira administrator to get code 2 or 7 on 1099r.

If that doesnt work, when filing return, use code 3 on form 5329 to wipe out penalty. Simple as that. Just be sure to have proof if anyone asks.


Niner
Auburn Fan
Member since Apr 2019
1670 posts

quote:

Show proof to ira administrator to get code 2 or 7 on 1099r.

If that doesnt work, when filing return, use code 3 on form 5329 to wipe out penalty. Simple as that. Just be sure to have proof if anyone asks.
Excellent. Thanks.


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