2007-03-22 02:52:09 · 3 answers · asked by Berta58 1 in Business & Finance ➔ Taxes ➔ United States
The IRA distribution is taxable income. That is unavoidable. However, one of the exceptions for the 10% penalty is "Total and Permanent Disability". See Form 5329.
http://www.irs.gov/pub/irs-pdf/f5329.pdf
2007-03-22 02:58:47 · answer #1 · answered by Wayne Z 7 · 1⤊ 0⤋
Generally the distribution from your IRA are taxable. If you are less than 59 1/2 years old you are subject to a 10% penalty however disability is an exception. You could have some deductions as a result of any modifications that were required to your residence due to your disability. Those get a little difficult to determine so you may wish to seek professional advise in that regard.
2007-03-22 03:00:22 · answer #2 · answered by ? 6 · 1⤊ 0⤋
The good news is that you don't have to pay the 10% early withdrawal penalty. The bad news is that you still have to pay income tax.
2007-03-23 08:31:53 · answer #3 · answered by taxman 2 · 0⤊ 0⤋