Cashing in IRA
Jan 23, 2004
I am HIV/HCV+, was diagnosed with AIDS due to low CD4 count (which is now higher). Can I cash in some or all of my IRA without penalty? If so, how do I go about doing so. I am self-emplyed. Thanks.
Response from Ms. Franzoi
A distribution from an IRA that is attributable to an individual's disability is not subject to the 10% penalty but is subject to ordinary income taxes. Distributions that are part of a series of substantially equal periodic payments (not less frequently than once a year) made for the life of the individual aren't subject to the 10% penalty but are subject to ordinary income taxes. I suggest you discuss this with your accountant.
Get Email Notifications When This Forum Updates or Subscribe With RSS
This forum is designed for educational purposes only, and experts are not rendering medical, mental health, legal or other professional advice or services. If you have or suspect you may have a medical, mental health, legal or other problem that requires advice, consult your own caregiver, attorney or other qualified professional.
Experts appearing on this page are independent and are solely responsible for editing and fact-checking their material. Neither TheBody.com nor any advertiser is the publisher or speaker of posted visitors' questions or the experts' material.