Jump to content
  • Searches Community Forums, Blog and more

  • 0
Sign in to follow this  
andyxoxo

Two Questions

Question

Hi, not sure what section to post these two questions so here goes:

1) Anyone know if being rated by the VA as 100% schedular or TDIU satisfies the IRS requirement as being totally disabled in order to be able to make IRA withdrawals penalty free before age 59 1/2? Or would I have to be approved for SSDI as well?

2) Are VA retro payments based on year's past rates or the current year's rates? For example, in 2012 we get a 3.6% raise on our disability payments. But let's say my NOD is approved in 2012 and am thus owed a couple of years backpay on my new rating. Will those back payments be entirely based on the new 2012 rates (with the new 3.6% increase included) or a mixture of the previous years' rates with the current year's rate.

Thanks, ANdy

Share this post


Link to post
Share on other sites

4 answers to this question

Recommended Posts

At 100% TDIU I have withdrawn IRA money & not paid the 10%.

The pay is whatever you would have been paid in that year or years. You don't draw 2012 pay rate for 2007 period because it was awarded retro to 2007. Good try, think we can get the VA to approve?

Share this post


Link to post
Share on other sites

Ad

Retro (back pay) is based upon the rates in effect during the time that the retro covers. (Minus any previous payments for the same periods.) IE This can occur when a rating increase is retroactive, or payment was made for a lower % condition that is separate from a retroactive 100% or TDIU rating. I.E. You were SC'd for DMII at the usual 20%. A retroactive award for another SC'd condition was granted, based upon a Nehmer review at 100%. The previously made payments for the 20% are deducted from the 100% retro due as a result of the Nehmer review's additional retroactive award.

As to income credits, etc. The forms to claim this require that you disclose VA payments and other nontaxable income. I'm against this in principal, and every time I bothered to fill out/use the forms, The result was that I could not claim the credit.

As to IRS rules

http://www.irs.gov/i...=168606,00.html

(Page leading to info, etc. for disabled taxpayers)

In any event, a doctors statement that you are disabled, and so forth, is covered in IRS publications and instructions.

(It would seem that you have several options to show the IRS that you are "P&T")

I don't know anything about your VA disability rating. SSA uses different rules than the VA. As a result, it's possible to be disabled by the VA and not disabled by SSA.

Or, SSA considers you to be totally disabled by the same conditions that the VA rates at lower percentages. This is where VA "TDIU" can come into play.

SSA can lump together conditions that the VA rates as unrelated co-existing conditions.

Hi, not sure what section to post these two questions so here goes:

1) Anyone know if being rated by the VA as 100% schedular or TDIU satisfies the IRS requirement as being totally disabled in order to be able to make IRA withdrawals penalty free before age 59 1/2? Or would I have to be approved for SSDI as well?

2) Are VA retro payments based on year's past rates or the current year's rates? For example, in 2012 we get a 3.6% raise on our disability payments. But let's say my NOD is approved in 2012 and am thus owed a couple of years backpay on my new rating. Will those back payments be entirely based on the new 2012 rates (with the new 3.6% increase included) or a mixture of the previous years' rates with the current year's rate.

Thanks, ANdy

Edited by Chuck75

Share this post


Link to post
Share on other sites

I think the IRS rules on IRA withdrawals are sort of tricky. I think I would have a CPA look at it and get an expert opinion.

Share this post


Link to post
Share on other sites

The rules are complicated when you are under 59-1/2. But, If you have a doctors brief signed statement of disability per the IRS Pubs, and you file it or have filed it in the past, The penalty is waived. But, the money from the IRA will be subject to tax. (unless it's a Roth IRA, which has the tax already paid.

These days, one of my tax related tasks is to calculate how much I can withdraw from an IRA each year without hitting income limits that would increase the income subject to tax, or the rate.

I'm still unhappy about the years that the VA delayed things, and I had to draw on capitol to survive. At least I was more fortunate than some.

I think the IRS rules on IRA withdrawals are sort of tricky. I think I would have a CPA look at it and get an expert opinion.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

  • Our picks

    • Sleep apnea- does the DBQ cover the "medically necessary/required" language?
      Hey everybody! Long time lurker, first time poster.

      My question is regarding the sleep apnea language that specifies that a prescription of a breathing assistance device is "medically necessary" for a 50% rating:

      Assuming that a vet is already prescribed a CPAP/APAP by the VA, does the sleep apnea DBQ portion under 2B "IS CONTINUOUS MEDICATION REQUIRED FOR CONTROL OF A SLEEP DISORDER CONDITION?" fulfill that language requirement?
      • 27 replies
    • VBA testimony and GAO report-C & P examiners
      As you all know, C & P exam results control almost all types of claims. VA employees have no choice but to go along with a negative C & P exam that will deny a claim. Some vets are quite willing to rebutt faulty exams and ask for a new C & P exam. For others, it will take a costly IMO/IME in most cases. Ben Krause has this article at his site today: http://tinyurl.com/y9co6zac
      • 9 replies
    • Lumbosacral Strain and Vertebrae fractures caused by osteopenia
      Hi.  I have a couple questions and welcome all recommendations for my disability claim.  I am currently 10% disabled for lumbosacral strain and deferred decision for this and vertebrae fractures caused by osteopenia.  I had a MRI February 2018 and results include moderate compression fracture of L1, mild to moderate compression fracture of L2, moderate to severe compression fracture of L3, mild compression fracture of T11.  Additionally, L3 moderate spinal canal stenosis, L2 mild to moderate retropulsion with mild spinal canal stenosis, multilevel degenerative changes, multilevel disc bulges, disc herniations, L1-L2 mild broad-based disc bulge with mild spinal canal stenosis, L2-L3 mild broad based disc bulge with mild to moderate spinal canal stenosis,  L3-L4 mild to moderate broad based disc bulge and severe bilateral neuroforaminal narrowing.   I have read that these malfunctions should have been claimed individually.  Will the VA evaluate/rate each condition separately?  If not, I may have to appeal or submit a new claim.  What are some thoughts and suggestions.  Do these disabilities belong in the lumbosacral strain or the vertebrae fractures caused by osteopenia.  I am totally in the dark on this stuff.  I am pretty sure no diagnosis codes have been assigned.  What can I do to support my claim?  HELP!!!!!
      • 2 replies
    • Ignore Members Who Annoy You - How To
      How To Ignore Members Who Annoy You

      I'd love it if we all got along, no one had a bad day and everyone respected each other however, living in the real world it just doesn't work that way.

      If you find a member adds no value to your knowledge on a topic hover over their name and then choose Ignore User. You cannot ignore moderators and admins but you can ignore others.

      Thousands of veterans have come here for over 20 years to find answers and support. I wish we could help each and every veteran, but some we cannot. Sometimes folks just rub each other the wrong way and that is where the Ignore User feature comes in. Ignore the user and move on...
      • 1 reply
    • Ignore Members Who Annoy You - How To
      How To Ignore Members Who Annoy You

      I'd love it if we all got along, no one had a bad day and everyone respected each other however, living in the real world it just doesn't work that way.

      If you find a member adds no value to your knowledge on a topic hover over their name and then choose Ignore User. You cannot ignore moderators and admins but you can ignore others.

      Thousands of veterans have come here for over 20 years to find answers and support. I wish we could help each and every veteran, but some we cannot. Sometimes folks just rub each other the wrong way and that is where the Ignore User feature comes in. Ignore the user and move on...
      • 1 reply
  • Ads

  • Popular Contributors

  • Ad

  • Latest News
  • Our picks

    • Sleep apnea- does the DBQ cover the "medically necessary/required" language?
      Hey everybody! Long time lurker, first time poster.

      My question is regarding the sleep apnea language that specifies that a prescription of a breathing assistance device is "medically necessary" for a 50% rating:

      Assuming that a vet is already prescribed a CPAP/APAP by the VA, does the sleep apnea DBQ portion under 2B "IS CONTINUOUS MEDICATION REQUIRED FOR CONTROL OF A SLEEP DISORDER CONDITION?" fulfill that language requirement?
      • 27 replies
    • VBA testimony and GAO report-C & P examiners
      As you all know, C & P exam results control almost all types of claims. VA employees have no choice but to go along with a negative C & P exam that will deny a claim. Some vets are quite willing to rebutt faulty exams and ask for a new C & P exam. For others, it will take a costly IMO/IME in most cases. Ben Krause has this article at his site today: http://tinyurl.com/y9co6zac
      • 9 replies
    • Lumbosacral Strain and Vertebrae fractures caused by osteopenia
      Hi.  I have a couple questions and welcome all recommendations for my disability claim.  I am currently 10% disabled for lumbosacral strain and deferred decision for this and vertebrae fractures caused by osteopenia.  I had a MRI February 2018 and results include moderate compression fracture of L1, mild to moderate compression fracture of L2, moderate to severe compression fracture of L3, mild compression fracture of T11.  Additionally, L3 moderate spinal canal stenosis, L2 mild to moderate retropulsion with mild spinal canal stenosis, multilevel degenerative changes, multilevel disc bulges, disc herniations, L1-L2 mild broad-based disc bulge with mild spinal canal stenosis, L2-L3 mild broad based disc bulge with mild to moderate spinal canal stenosis,  L3-L4 mild to moderate broad based disc bulge and severe bilateral neuroforaminal narrowing.   I have read that these malfunctions should have been claimed individually.  Will the VA evaluate/rate each condition separately?  If not, I may have to appeal or submit a new claim.  What are some thoughts and suggestions.  Do these disabilities belong in the lumbosacral strain or the vertebrae fractures caused by osteopenia.  I am totally in the dark on this stuff.  I am pretty sure no diagnosis codes have been assigned.  What can I do to support my claim?  HELP!!!!!
      • 2 replies
    • Ignore Members Who Annoy You - How To
      How To Ignore Members Who Annoy You

      I'd love it if we all got along, no one had a bad day and everyone respected each other however, living in the real world it just doesn't work that way.

      If you find a member adds no value to your knowledge on a topic hover over their name and then choose Ignore User. You cannot ignore moderators and admins but you can ignore others.

      Thousands of veterans have come here for over 20 years to find answers and support. I wish we could help each and every veteran, but some we cannot. Sometimes folks just rub each other the wrong way and that is where the Ignore User feature comes in. Ignore the user and move on...
      • 1 reply
    • Ignore Members Who Annoy You - How To
      How To Ignore Members Who Annoy You

      I'd love it if we all got along, no one had a bad day and everyone respected each other however, living in the real world it just doesn't work that way.

      If you find a member adds no value to your knowledge on a topic hover over their name and then choose Ignore User. You cannot ignore moderators and admins but you can ignore others.

      Thousands of veterans have come here for over 20 years to find answers and support. I wish we could help each and every veteran, but some we cannot. Sometimes folks just rub each other the wrong way and that is where the Ignore User feature comes in. Ignore the user and move on...
      • 1 reply
  • Advertisemnt

  • 14 Questions about VA Disability Compensation Benefits Claims

    questions-001@3x.png

    When a Veteran starts considering whether or not to file a VA Disability Claim, there are a lot of questions that he or she tends to ask. Over the last 10 years, the following are the 14 most common basic questions I am asked about ...
    Continue Reading
     
  • Donation Box

    Please donate to support the community.
    We appreciate all donations!
  • Ads

  • Most Common VA Disabilities Claimed for Compensation:   

    tinnitus-005.pngptsd-005.pnglumbosacral-005.pngscars-005.pnglimitation-flexion-knee-005.pngdiabetes-005.pnglimitation-motion-ankle-005.pngparalysis-005.pngdegenerative-arthitis-spine-005.pngtbi-traumatic-brain-injury-005.png

  • Advertisemnt

  • Advertisemnt

  • Ads

  • Can a 100 percent Disabled Veteran Work and Earn an Income?

    employment 2.jpeg

    You’ve just been rated 100% disabled by the Veterans Affairs. After the excitement of finally having the rating you deserve wears off, you start asking questions. One of the first questions that you might ask is this: It’s a legitimate question – rare is the Veteran that finds themselves sitting on the couch eating bon-bons … Continue reading

×

Important Information

{terms] and Guidelines