Waiver of 10% penalty on early w/d
Last year, a wife took a total distribution of her IRA, pre 59 1/2 due to disablity. She is on SSDI. They claimed an exception and avoided the penalty. This year, her husband w/d from his IRA pre 59 1/2 to help cover expenses. I assume he can not claim an exception since he is not the one who is disabled, but thought I would double check.
Permalink Submitted by Alan - IRA critic on Thu, 2015-02-12 23:49
That is correct. The disability exception, unlike some other exceptions such as higher education expenses, applies only to the taxpayer.