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Member
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Join Date: Mar 2010
Posts: 496
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Member
Join Date: Mar 2010
Posts: 496
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I did cash in my IRA and did not have to pay the penalty fee. This was done around 2001-2002. Sorry, I forgot the documentations I had to present to void out the 10% fee. I do remember when I did cash out, I was not on SSDI yet. Still in the early process stage (before reconsideration & ALJ phases).
I seem to remember everything was done through the bank that held my IRA acct. They did all the paperwork and submitted to the IRS. More than likely the bank had to obtain a statement or some form from my neurologist to forward to the IRS. All this was done prior to me receiving a check! Everything was done electronically, so the check was deposited into my account within 48 hours after the IRS received the pertinent documents.
Also not sure if the IRA vs IRS rules have changed since 2001-2002.
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