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IRA Distribution

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Last Updated On
ByJabob

L1: IRA DistributionFor the last four years I’ve used the 72t rule to withdraw separate equal payments from my IRA using code 1 to avoid the 10% penalty, I’ve recently been declared disable and receiving payment from the Veterans Administration and Social Security. I no longer need the full amount from the 72T SEP and would like to change the distribution code from (1) to (3) to represent my current and permanent status as disable and unable to work. Will that allow me to take out only what I need from the IRA without penalties, rather than having to stay with SEP. 2005-03-09 19:04, By: Jabob, IP: [68.35.85.113]
L2: IRA DistributionWhile the definition of disability is different for a SEPP and Social Security, the place to start is to contact the Custodian/Trustee of your IRA and explain the circumstances. Based on the information, they will probably consider you to be disabled and thus not subject to the penalty tax.
If disabledyou could pretty much make whatever withdrawals you desire. When you contact the Custodian/Trustee be as detailed a possible and get their response in writing.
Good luck and let us know what happens. 2005-03-09 19:14, By: Gfw, IP: [172.16.1.71]

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