Disability Exception-Distribution from Spousal IRA
L1: Disability Exception-Distribution from Spousal IRAI have a client that became permanently disabled. He and his spouse decided to take a distribution from the spouse’s IRA. Can we still claim exception to the 10% penalty even though the distribution came from the non-disabled spouse’s IRA?2008-02-22 08:08, By: PERKINSCPA, IP: [18.104.22.168]
L2: Disability Exception-Distribution from Spousal IRAI don”t think so. Each taxpayer stands on their own. No “crossover”. Next time tell them to talk to you first.
Professionally I get annoyed at “clients” who act first, and then want us to bail them out. They think they are “saving” by not incurring our fees. I think it serves them right to have to pay extra taxes because they are short sighted. Fortunately, or unfortunately,my clients call me for everything, but at least they are well advised before they act.2008-02-22 09:03, By: dlzallestaxes, IP: [22.214.171.124]
L2: Disability Exception-Distribution from Spousal IRAUnfortunately, no. To qualify, the distribution would had to have been from the IRA of the disabled IRA owner.
If the distribution occurred less than 60 days ago (and is eligible as a rollover), roll it back into the spouse”s IRA and re-distribute fromclient”s IRA.2008-02-22 09:03, By: Gfw, IP: [126.96.36.199]