L1: disabilityif someone becomes disabled during 72t distributions, can he/she stop payments?
2008-08-20 12:08, By: njersey, IP: [184.108.40.206]
L2: disabilityFirst, I suggest that you use a great feature on this list-serve to SEARCH the data base. You do this by going to “home” on the page that lists the most recent postings, or above left on this page. Then to the right, select “search”, which is the 3rd item. Enter “disability”, and it will list about 20 FAQs, most of which probably mention disability, but I didn”t check them out.
However, there are 2 key FAQs near the end. One is “What happens if I die or become disabled?”, and the next to last one is “What is the definition of disdabled under 72-T?”
Basically, if you qualify under the 72-T definition of disabled, then the 10% penalty becomes waived. While you can stop payments, I think it is probably better under those circumstances to continue or increase your payments without penalty, and without “busting” your plan.2008-08-20 12:37, By: dlzallestaxes, IP: [220.127.116.11]