JJStephens Posted January 8, 2009 Report Posted January 8, 2009 Taxpayer is totally disabled. Spouse has a qualified plan. Both are under 59.5. Does the spouse's withdrawal from her 401k qualify for exclusion from the additional 10% tax on early withdrawal by virtue of the husband's disability? I have a vague recollection that it does not but cannot find a definitive source. Quote
TAXBILLY Posted January 8, 2009 Report Posted January 8, 2009 The only exception I am aware of would be the use of the money for medical expenses exceeding 7 1/2% (exception 05). http://www.irs.gov/pub/irs-pdf/i5329.pdf taxbilly Quote
JJStephens Posted January 8, 2009 Author Report Posted January 8, 2009 The only exception I am aware of would be the use of the money for medical expenses exceeding 7 1/2% (exception 05). http://www.irs.gov/pub/irs-pdf/i5329.pdf taxbilly Thanks for the feedback. They may or may not meet the 05 (see pg 3 of Pub 5329) exception (amount in excess of 7.5% of AGI). What I'm wondering is if they meet the 03 exception for total disability. Quote
TAXBILLY Posted January 8, 2009 Report Posted January 8, 2009 Don't think so because the 401(k) spouse is not the one who is disabled. taxbilly Quote
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