Hello and thank you for using Just Answer,The amount will be a gift. Although you can not assign the IRA to the friend you could cash it out and then give the money to the friend.As you are disabled you would be allowed the exception for any penalty (10% would apply because you are under 59 1/2). You would use form 5329 to claim the exception form penalty.The Form 709 would be required because the gift limit is $14,000 in one year but you can claim the lifetime exclusion on gifts and actually pay tax.
All the above is with the understanding that the IRA is a traditional IRA and no tax was paid on any amount in the IRA.
Please let me know if you need clarification on any of the above info (especially on the law about gifting your IRA).
The IRA is a FIDELITY ONE HOWEVER I HAVE A QUESTION AS TO GIVING THE GIFT TO MY FRIEND. WILL SHE HAVE TO CLAIM THE GIFT?
No, your friend would have no tax event at all from the gift.
THANK YOU FOR EVERYTHING
You are most welcome