[rarobinson17]

I was retired last year because of a back injury and told by my doctor that I was not capable of continuing my job as before. Also I was told that I was disabled and put into disability by my company and private insurer.
Long story short I had to withdraw funds from my 401-K to survive,pay off bills and be able to pay medical insurance bills, etc.
Am I able to be forgiven for my withdrawals as far as taxes because of these circumstances?
I have documentation showing being under disablility and not being able to work.

[MukatA]

Exceptions to Early Withdrawal
1. If you are totally and permanently disabled,
2. You have deductible medical expenses (medical expenses that exceed 7.5% of your adjusted gross income), whether you itemize your deductions for the year.

[rarobinson17]

Are there forms I need to have filled out to do this? When I look at the 1099-R it says taxable income.

[ebaines]

The distributions are indeed taxable - you can't avoid that. What Mukata was referring to is that you qualify for not also having to pay the 10% early withdrawal fee. To see what form (if any) is needed to avoid paying the penalty - what is the distribution code that is printed in Box 7 of your 1099-R?

[rarobinson17]

1
Thanks

[ebaines]

Distribution Code "1" means that this is an early distribution with no known exception, hence subject to the 10% penalty. If you are permanently and totally disabled you should complete form 5329 and submit it with your taxes next year to document that you meet the exception.