10% wavier of penalty for IRA

IF a person has Mutiple scerlosis and is confined to a wheelchair permeantily, would the IRS waive the penalty of 10% if he were to withdraw IRA funds at the age of 51/
The IRS defintion is unclear as to what is considered disabled
Thanks



Sec 72(m)(7) applies and basically states that a disability which results in a person not being able to work which is expected to be of long term duration will qualify for the penalty waiver. This certainly qualifies, but if the 1099R is not coded 3 the person will have to complete Form 5329 to claim the exception. A letter from the person’s MD stating that the disability complies with the code section above and submitted to the IRA custodian should result in the 1099R being coded 3, and then a 5329 will not be needed. 



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