Early Withdrawal and Disability


Early Distribution

Distributions from a traditional IRA prior to age 59 1/2 are subject to a 10% penalty in addition to federal and state income taxes. Under the following circumstances, you may be able to avoid the penalty on early withdrawal:

- Qualified higher education expenses,

- Qualified first-home purchase (lifetime limit of $10,000),

- Certain major medical expenses,

- Certain long-term unemployment expenses, and

- A series of substantially equal periodic payments.


IRS Definition of Disabled

"You are considered disabled if you can furnish proof that you cannot do any substantial gainful activity because of your physical or mental condition. A physician must determine that your condition can be expected to result in death or to be of long, continued, and indefinite duation."

(http://www.irs.gov)


Please call a Retirement representative at 800-544-6666 for more information.