Disability and 72T

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L1: Disability and 72THi Everyone: If a person receives a “reward notice” from Social Security Administration declaring them disabled, can that person stop the 72T and begin regular distributions?2012-08-08 17:23, By: Rosa, IP: [108.6.203.113]
L2: Disability and 72TNot necessarily. You have to check the IRS specific regulations for IRA distributions and the Sec 72 disability exclusion.2012-08-08 20:20, By: dlzallestaxes, IP: [173.62.190.86]

L3: Disability and 72TOk. Thank you.2012-08-09 01:39, By: Rosa, IP: [108.6.203.113]

L4: Disability and 72TYou can pull up info on the disability penalty exception on p 50 of Pub 590. Pub 590 can be located under the “Resources/Links” Tab above.
The formal definition of disability for these purposes can be found in Sec 72(m)(7).
In almost all cases a disability award will allow you to terminate your plan. But the award is not 100% conclusive. You can further improveyour chances if you send the award letter and a physicians letter indicating you meet the 72(m)(7) conditions to your IRA custodian and ask them to code distributions made after the date of the award as Code 3 on the 1099R.
2012-08-09 02:45, By: Alan S, IP: [24.116.67.233]

L5: Disability and 72TThank you!! This is very informative. However, I am not sure I understand what you mean by the “…award is not 100% conclusive?” Would you please elaborate? Thanks.2012-08-09 12:41, By: Rosa, IP: [108.6.203.113]

L6: Disability and 72TSimply… the definition of disability for social security and a SEPP plan are similiar, but not the same.
Follow Alan’s instructions to be 99.9% sure… “You can further improveyour chances if you send the award letter and a physicians letter indicating you meet the 72(m)(7) conditions to your IRA custodian and ask them to code distributions made after the date of the award as Code 3 on the 1099R.”2012-08-09 12:59, By: Gfw, IP: [205.178.67.189]

L7: Disability and 72TThanks! Will do!2012-08-09 19:41, By: Rosa, IP: [108.6.203.113]