Bookmark and Share

SBS-AP Certification of Disability

For disbursement tax reporting.

Instructions

In order to avoid the premature distribution tax, the IRS needs a physician’s signature on the below form certifying the disability meets the definition found under Internal Revenue Code §72(m)(7). Such definition provides that a person is 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." Federal Treasury regulations provide that the "substantial gainful activity to which §72(m)(7) refers is the activity, or a comparable activity, in which the individual customarily engaged prior to the arising of the disability or prior to retirement if the individual was retired at the time the disability arose."