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    IRAs and disability

    I have a little money in a traditional IRA. I don?t expect to use a for long time. Does it make sense to convert it now to a Roth, so I don?t pay taxes on any growth? Are there different rules about required minimum distributions? And as a disabled person, what rules are different for me, does anyone know?

    #2
    Originally posted by Random View Post
    I have a little money in a traditional IRA. I don?t expect to use a for long time. Does it make sense to convert it now to a Roth, so I don?t pay taxes on any growth? Are there different rules about required minimum distributions? And as a disabled person, what rules are different for me, does anyone know?
    This article may help:
    How Am I Taxed on My Required Minimum Distribution if I Am Disabled?

    Your disability won't affect the taxes on your retirement account RMDs.


    Usually, required minimum distributions aren't required from your retirement plans until you're 70 1/2 years old or, in some employer plans, until the year you retire if that's later. You might also have to take required withdrawals from an inherited account, but you don't have to worry about the early withdrawal penalties on those either. The bottom line is this: the distributions when you're disabled are taxed the same way as distributions when you're not.

    To read the entire article: https://finance.zacks.com/am-taxed-r...bled-8833.html

    The only break you get with an IRA and disability is if you are younger than 59-1/2 years old and become disabled, you can withdraw, I believe, up to $50,000 without having to pay the 10% penalty, accessed on early withdrawals, but you still have to pay income tax on the traditional IRA distribution, even if it is a withdrawal made for purposes of funding disability care and replacing income.

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