Profit Sharing Plan participant begins taking substantially equal periodic payments at age 54. Participant becomes disabled at age 57.

Due to disability, can participant modify the substantially equal period payments without invoking 10% early withdrawal penalty?

Note: This is prior to the later of 5 years from date of first equal payments or age 59 1/2.

I think so. Section 72(t)(4)(ii) refers to recapture of the 10% penalty if "the series of payments under such paragraph are subsequently modified (other than by reason of death or disability)" (NOTE: The "paragraph" mentioned in this quote is 72(t)(A)(iv), which is the substantiall equal periodic payments exception to the 10% penalty.)

It would seem that the recapture applies only if the modification is not due to death or disability.

Hope this is of some help.