Disability due to Dialysis

[Rerun]

I took a disability from my job due to ESRD aka trying to work and do dialysis for six months..... didn't work out.

That was in 2005.  I had an IRA that I'd now like to take some money out of.  I'm only 51 so they say I have to pay a penalty of 10%. 

I don't think I do because of the exceptions that say "Permanent Disability"  It refers to IRC Section 72(m)(7)

72(m)(7) MEANING OF DISABLED. --For purposes of this section, an individual shall be considered to be disabled if he is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or to be of long-continued and indefinite duration. An individual shall not be considered to be disabled unless he furnishes proof of the existence thereof in such form and manner as the Secretary may require.

Does a person on dialysis fall under this section? 

[frankswife]

I believe you may not have to pay the penalty. Frank is cashing out his 401k, and if you are "permanently and totally disabled" the penalty is waived. There is a form you fill out for the IRS.

[smcd23]

Rerun - what are you citing the meaning of disabled from? That sounds like your plans rules, in which case I believe you would qualify. Typically disability is defined as an impairment lasting 12 months or longer or resulting in death.

As for the IRS, I believe there is a form the doctor has to complete and you retain it for records in the event you are audited. I found this link that summarizes the IRS stuff http://www.bankrate.com/finance/money-guides/irs-rules-for-early-ira-withdrawals-1.aspx

Dialysis/kidney failure is generally considered permanent unless you get a transplant, and if  you are not eligible for a transplant, I can't see any reason why they would deny your request.

[okarol]

ESRD is not curable. 

[Rerun]

OK, thanks.

           

[jeannea]

I took a bunch out of my 401K. I had to provide a paper that I was on Social Security disability and I paid no penalty.

[amanda100wilson]

it's a disability.

[smcd23]

Yeah I phrased that wrong! But speaking in terms of how they view ESRD in the disability world -  dialysis is disabling, once you have a stable transplant, you're not necessarily qualified as disabled unless there is something else going on.

[MommyChick]

Yeah I phrased that wrong! But speaking in terms of how they view ESRD in the disability world -  dialysis is disabling, once you have a stable transplant, you're not necessarily qualified as disabled unless there is something else going on.

I totally agree with you!
Once you get a transplant as long as its a good working one, you can live a normal life, for the most part.
So tech. that wouldn't count as permanent.  Now I can see if your looking to be on dialysis the rest of your life & not want a transplant or even if other healthy problems are there then that might consider you for
"permanent disability".

[jeannea]

For taking money out, it doesn't usually matter if you're permanently disabled so much as currently disabled. Being on dialysis gets you Medicare and Social Security benefits. Therefore you get your money without penalty. But not without tax.

[lmunchkin]

You should not be penalized for early withdrawal due to disability or any kind of hardship you are dealing with.  You can pull some out to help with matters of hardship.  However, you do have to pay the taxes on it.  Not the penalty for early withdrawal.

God Bless,
lmunchkin

[Rerun]

I had to dig out my Social Security "Award Letter" and I found some other papers.  That was back in 2006.  Some things have changed except I'm still on dialysis only for 8 hours 3 x a week instead of 3 hours 3 times a week like it said back then.

I'm sure I'll be fine.  I just have to pay tax but not the penalty.

[Jean]

If it is a regular IRA, then you are good to go, if it is a Roth Ira, I am not so sure. Call the IRS and ask them, that is the easiest way.

[Rerun]

If it is a regular IRA, then you are good to go, if it is a Roth Ira, I am not so sure. Call the IRS and ask them, that is the easiest way.

Yes it is a traditional IRA.

[jeannea]

If you need a new letter, go to your local Social Security office and they print one out.

[treesx4]

I have been declined 3 times to be on disibility.. Suck to be me!

[Southpaw]

Treesx4, why were you turned down? are u on dialysis?  I am still working but thinking when I finally go on dialysis I might have to apply.

[Rerun]

They will decline you if you are "still" working. 

[okarol]

I posted a news story, not sure the info at the end, about disability, is correct?
http://ihatedialysis.com/forum/index.php?topic=27900.0

[smcd23]

Okarol - are you referring to the "A" at the end of the Medicare #? That has nothing to do with anything. What it means in SSA/Medicare world...

A = Primary beneficiary, meaning you are the number holder that worked
B = Spouse of worker
C1, C2 - Child worker and what number child you are.
D = Widow of worker over age 60
W = Disabled widow between age 50-60
T = Worker eligible for Medicare only, collecting no cash benefits.

Numbers after any of the letters (aside from A and T) just tell us if you were the current spouse, divorced widow, what number spouse if there are more than 1 entitled etc. The numbers/letters at the end of the Medicare number have nothing to do with when Medicare will stop.

[okarol]

I thought the story was confusing, and no, I am not referring to the "A" but it is mentioned in the article.

[smcd23]

Glad I'm not the only one who found it confusing!

[treesx4]

I just got the letter finally approving me. Since I left my job in August, all I need to send them are my payroll stubs!!

[Ricksters]

I stopped working in June....still haven't received any official notification that my SSD has been approved.  I called the local office three weeks ago, and was told I was approved and that I should receive a letter before my benefits start.  So seeing that the 5 month waiting period was up 2 weeks ago, if I don;t hear anything by Friday I will be calling again...somebody there has got to be able to tell me more than I will be getting a letter!

Ricki