Early 401K withdrawl and spouses disability


N

NCNavyVet

I made an early withdrawl of $11000 in 2004 from a 401K
plan. I knew that the money would be treated as regular
income but had expected to have medical expenses above that
amount to prevent the 10% penalty. With the additional
income, expenses did not reach beyond the threshold. I am
now searching for another possible exception.

Wife is 43, unable to work after bypass surgery in 2000 and
back surgery in 2001. Also suffers from diabetes and
chronic pain. She does not have sufficient quarters at the
right time to quaify for Social Security disability,
therefore she had not applied for disability.

Question: Since we file a joint return, does her disablity
qualify as an exception for me to make an early withdrawl
without penalty?
 
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P

Phil Marti

NCNavyVet said:
I made an early withdrawl of $11000 in 2004 from a 401K
plan. I knew that the money would be treated as regular
income but had expected to have medical expenses above that
amount to prevent the 10% penalty. With the additional
income, expenses did not reach beyond the threshold. I am
now searching for another possible exception.

Wife is 43, unable to work after bypass surgery in 2000 and
back surgery in 2001. Also suffers from diabetes and
chronic pain. She does not have sufficient quarters at the
right time to quaify for Social Security disability,
therefore she had not applied for disability.

Question: Since we file a joint return, does her disablity
qualify as an exception for me to make an early withdrawl
without penalty?
Sorry, no.
 

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