Avoiding an IRA 10% Early Withdrawal Penalty
Before you turn 59 ½ you will incur a 10% penalty for withdrawing money from your IRA. However, there is an exception for people who are below the minimum age requirement but are considered disabled and no longer able to work. If you meet these criteria, you will need to have your physician sign a letter documenting your disability and attach this letter to IRS Form 5329 to be filed with Form 1040. Attached below is a letter template for your physician to print on their letterhead and both necessary IRS forms. Also provide a copy of the letter and Form 5329 to the Plan Administrator so it does not withhold the 10% penalty amount.
Sample letter from Physician to avoid IRA 109 early withdrawal penalty
For individualized tax advice or high net worth tax planning services, contact Fredric C. Jacobs who is Florida Board Certified in tax law and an AV rated attorney at (941) 906-1231.
