DORFMONT[at]aol.com (Linda Dorfmont) wrote:

- quote -

The totally and permanently disabled exception to the 10%
penalty applies to both qualified retirement plans and
annuities.

--
Alan
http://taxtopics.net

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >

T/P has terminal cancer and is undergoing chemotherapy and
radiation treatment. There have been several surgeries and
I'm sure one of her physicians would give her a life
expcetancy of less than 2 years if not much less. This year
her father took out money from her annuities and her IRA to
pay for her chemo treatments and surgeries. She is 46 years
old. The IRA is pretty clear - there is no 10% penalty
because of her disability. But what about the taxability of
the annuities? Does she get the same exemption from the
penalty due to medical expenses and disability? She has no
medical insurance and minimal income from investments. Her
parents can claim her as a dependent otherwise.

Linda Dorfmont E.A., CFP, CSA

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== >