Medical waiver for early distribution
I have a client (age 46) who is recovering from cancer treatment.
Because she was not able to work during her treatment, she now needs to take money from her IRA.
I know that if someone is completely disabled, SSDI eligible, they can waive the penalty, but what if they were only completely disabled during the time of the treatment and a short while beyond?
Permalink Submitted by Alan - IRA critic on Mon, 2022-08-29 14:50
At this time she apparently does not meet the requirements of Sec 72(m)(7) and would not be eligible for SSDI since her condition has not yet determined to be life threatening or of long and continued duration. As such, she is not eligible for the disability exception, but might qualify for the high medical costs exception (Paid expenses over 7.5% of her AGI). There is also an exception if she collected UC due to job loss and paid medical insurance premiums.
Permalink Submitted by Tim Seiders on Mon, 2022-08-29 14:59
Alan,Thank-you for this comprehensive answer.It is very helpful.Tim