I am considered disabled by social security and have been since 2012. Right now I am 62 years old and have had stage 4 colon cancer since early 2010. I worked for a TV station but rolled over that money into A SEP/IRA when I became a freelance cameraman/independent contractor in 1994. Is it possible for me given my circumstances to now access my SEP/IRA account without extra penalty though obviously taxes of some sort would have to be paid? It is not a huge amount of money but I suspect if the IRA is left to my kids they will blow through it without a second thought.
Terry Says: Well, I’m very sorry to hear about your situation. But there is NO PENALTY if you want to take money out of a retirement account after age 59-1/2. You will have to pay ordinary income taxes on the withdrawal. And withdrawals from an IRA do not impact SSDI benefits.