Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
[[I am able to withdraw without penalty from my standard IRA due to total disability (I am 53). Does
anyone know if I switch to a Roth if I would be able to withdraw also immediately without penalty
?(I have no taxable income other than withdrawals from the IRA and with my deductions the
rollover to Roth could be essentially tax free).]]

Disability IS a penalty exception, both for a regular IRA and a Roth IRA. But you must be disabled according to IRS guidelines....and this can get a little tricky. An individual is considered disabled if he is unable to engage in any "substantial gainful activity" by reason of any medically determininable physical or mental impairment which can be expected to result in death or to be of long continued and indefinite duration. But an individual is NOT considered disabled unless he furnished proof of the disability in the form or manner required by the IRS (even though that form or manner has yet to be described.

For additional information on the disablity requirements to avoid the penalty, see IRS Publication 590 at the IRS web site.

TMF Taxes
Roy

SPECIAL NOTE: I try to answer as many questions as I can each week, and I generally select those that have not been asked before. If you don't get a detailed answer to your question, it is probably because my time is so limited during tax season, or because it has already been asked and answered in this folder in the past, or because it has been discussed in the Taxes Frequently Asked Questions area. In order to visit the Taxes FAQ area, go to the Fool's School area (http://www.fool.com/school.htm) and check out "Other Features" in the list box, OR you can jump directly to the Taxes FAQ area (http://www.fool.com/school/taxes/taxes.htm). Additionally, if any references were made to the IRS Web Site, you can get there by pointing your web browser to (http://www.irs.ustreas.gov)
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.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.