Old Pension client on disability... $ in IRA now & wants to withdrawl

[K-t-F]

An old pension client of mine terminated her plan and rolled the $ into her IRA. She is on disability and doesn't think she will make it to retirement age before she dies. She asked me if I knew if she could withdrawn funds from her IRA without penalty since she is disabled. I admitted that I couldnt answer that question but would see what I could find out.

Is the answer dependent on the IRA?... or is there a definitive answer with regards to all IRAs?

Also, is there a # to call at the IRS?

Any help would be greatly appreciated!!

[Guest Derelict]

Yes disability is an exception to the additional 10% tax. Note that this definition of disabled is from 72(m)(7) of the code not a Social Security Def but from the little info that you've stated it appears that the qualification would be met.

quick snip

(7) Meaning of disabled

        For purposes of this section, an individual shall be considered

      to be disabled if he is unable to engage in any substantial

      gainful activity by reason of any medically determinable physical

      or mental impairment which can be expected to result in death or

      to be of long-continued and indefinite duration.  An individual

      shall not be considered to be disabled unless he furnishes proof

      of the existence thereof in such form and manner as the Secretary

      may require.