Question

Reduce Early Withdraw Penalty for IRA - Permanent Disability

Forum|Forum|5 years ago
June 29, 2020
1 reply
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My husband has an early withdraw penalty on his IRA. TurboTax has listed suggestions for how to reduce the penalty. One is permanent disability. He was declared legally disabled the same year as the IRA withdraw. Can we list the withdraw amount in the field since it went toward paying expenses due to his disability?

TurboTax Home & Biz Windows

Hal_Al

Employee

Q. . Can we list the withdraw amount in the field?

A. Yes.

You can do so because he is considered disabled. It is not necessary that the money was used to pay disability expenses.

O

Opus 17

Employee

Remember that withdrawals from a traditional IRA are always subject to regular income tax. The only tax you might be exempt from is the additional 10% penalty for early withdrawals.