Message Font: Serif | Sans-Serif
No. of Recommendations: 0
I have two Roth IRAs. The first one I converted to a Roth from a Traditional IRA. The second I opened originally as a Roth IRA. I plan to open Roth IRAs every year in the future.

I am disabled. I was officially disabled before either of these IRAs became Roth IRAs. My disability is permanent, so I will continue to be disabled during the time I open new Roth IRAs. My income comes from Social Security Disability and my company's Long Term Disability plan. I am carried on the company's books as an "active" employee on disability leave so I believe my company income counts as "earned income" for contribution to Roth IRAs. I am not sure about my Social Security income. I will be 59 1/2 in Oct, 2000.

Does anyone know how the distribution qualifications for "disabled" apply in my case?

Specifically, do I have to leave money in the Roth IRA for 5 years from the time I open each Roth IRA before I am "qualified" to withdraw it? (my understanding is that if someone "becomes" disabled, they are "qualified" to withdraw tax-free before the five years is up). If I am able to put $2,000/yr in stocks with both the principle and resulting growth available to me at any time TAX FREE ... I am truly in a FOOL's paridise.

Print the post  


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.