72T and disability

L1: 72T and disabilityIf an annuitant is getting 72T payments and becomes disabled, can they discontinue their 72T payments without penalty?2007-01-04 10:59, By: Hite, IP: [167.230.104.90]
L2: 72T and disabilityYes, BUT….. annuitant should be very sure that the disability meets the code requirements. The disability must be such that no gainful employment is possible and the disability must be of indefinite duration. Qualification for SSD should be considered only a minimum requirement and not a guarantee. A physician”s letter should be secured analyzing the situation as meeting these requirements. The only other similar requirement is even less desirable ….death.
Until this letter is in hand, it would not be advisable to modify the plan, however, with the annual requirement able to be satisfied at any time of the year, there is some retroactive flexibility built in. The letter should be sent to the IRA custodian to facilitate getting the disability exception code 3 on the 1099R because it not only would reduce the chances of inquiry, but would be helpful indefinitely to avoid having to attach a 5329 every year. 2007-01-04 20:41, By: Alan S., IP: [24.116.66.98]