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Disability Distribution Exception

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ByJim

L1: Disability Distribution ExceptionIf a 56-year old employee has “Early Retirement” from his company due to disability, and subsequently rolls over his 401(k) to an IRA, may distributions from the IRA be classified as “Disability” and receive an exception to the 10% early withdrawal penalty rules?
Periodic payments from the K-plan are not allowed per the plan document so leaving the funds with the company is not an option.
Jim2006-05-01 14:05, By: Jim, IP: [70.184.1.35]

L2: Disability Distribution ExceptionContact the IRA Custodian/Trustee and explain the circumstances and get their definition of disability. If you are disabled for Social Security purposes, chances are (but not always)that you will also meet their definition.2006-05-01 18:04, By: Gfw, IP: [172.16.1.72]

L2: Disability Distribution ExceptionI will check with the custodian. The client does have a lawyer team working to get both company long-term and SS Disability started.2006-05-02 08:32, By: Jim, IP: [70.184.1.35]

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