Just checking, when an individual is considered disabled (receiving SS disability) IRA's and other retirement distributions can be reclassified as a #3 distribution to avoid the 10% penalty, thru form 5329?
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CAN? I ain't sure, but I do if I have a statement from Social Security or a doctors statement such as used for 1040 Sched R. Just make sure that the distribution was after the date on the disability statement.Originally posted by JenMO View Post -
Can a man get soc sec at age 57 if he isn't disabled? I know he can't work. I thought all soc sec before retirement age was disability, except in the case of death, widows and kids.Comment
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Ssa
Take a look at the SSA site. ssa.gov
I believe early retirement is at age 62
and the only other time you can receive is due to permanent and total disability lasting greater than 1 year.
1099R code distribution 3, if disability would be taxable, but not subject to 10% early withdrawal penalty.
There is no provision for the Social Security Disability to be non taxable,(Disability or Retirement) it would still be included with other income to calculate how much of the Disability is caculated as income for AGI and taxable income.
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Sandy
SandyComment
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Thanks, that was what I thought, too. Edward JOnes is showing a 1 dist code, and is withholding 10%, and I am putting in a 5329 to change the code to 3. We are only filing a tax return to change the code and get his money back. How can he get Edward Jones to change the code and the withholding? It's a shame to have to pay me to get his money back when it shouldn't have been sent in.Comment
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Institutions
Have the client or you call for a general question, and find out what they need on file to correct to a code 3 - disability.
I suspect they need a verification of disability, (doctors statement) so should be pretty simple. Maybe Edward Jones even has a form to be completed.
SandyComment
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