Message Font: Serif | Sans-Serif
 
No. of Recommendations: 1
<<I unfortunately had to quit work, and live off of my retirement.>>

Sorry to hear that. I hope things get better for you.

<< I was of coursed penalized 10 percent and 20 percent was withheld for taxes. I was diagnosed as manic-depressive and was declared disabled. Since, IRAs can be withdrawn without penalties for disabilities or major medical, how can I recover the 10% that was with held, and can the taxes be recovered as well?>>

There shouldn't have been a 10% withholding. There should only have been a 20% withholding. And, if you qualify for the penalty relief, you would simply complete Form 5329 and attach it to your tax return.

You'll get your withholding back (or not) when you file your tax return for the year in question. You'll simply report your withholding as you do any other withholding.

TMF Taxes
Roy
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement