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SSDI and 401K withdrawl?


freedomisntfree

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freedomisntfree I am sure that your social security office should be able to provide that info. Word of caution when talking to those people; call back again and speak to another person to see if both their info jive. If you use an income tax preparer instead of doing taxes yourself, the should also provide that info (at no charge.) You want to be careful that it is accurate info certainly. You have until you are 70 1/2 to start withdrawing mandatory withdrawls from the 401 (k), so do the math going out 15 years. You don't want to exceed the income limit on your ssdi max limit. Maybe it makes sense to see your income tax expert and see if your situation would warrant going over the max one year, or, if you can, take out more than you need but keep it under the max limit. It is a moving target though because they can change those tax laws and leave you hanging.

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I agree with everything GBArmy says, I just want to add that you should be able to withdraw from your 401K without paying some of the fees since you are disabled.  Make sure your plan administrator knows you are SSDI so they can save you those monies.

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While I suggest you check with YOUR accountant, my unsubstantiated lay opinion is go ahead and draw money from your 401k.  Here is why:

VA...   VA compensation is not related to how much you have in the bank.  I dont know how much Senator Mc Cain had, but my guess is that he is worth at least a million dollars.  He was on Veterans disability.  Ditto for congressman Tammy Duckworth.  The VA does not have a right to take away benefits because you earned money in the past, contributed to a 401k, and now want to draw it out.  Its also not a crime to be disabled by VA, and earn money, especially off investments.  You can even work, but dont try that if you get tdiu..instead report to VA how much you earned in the last 12 months, as required.  

Social Security disability...Its not a crime to earn money and contribute to a IRA or 401k for retirement, then get disabled later.    I personally have taken money as a withdrawal from an IRA, even tho Im P and T and also get social security disabilility.  

SSI is a different story.  This is essentially welfare.  It is a crime to deceive the government into thinking you need welfare or food stamps, when, in fact, you have money you have hidden from them.  You could get caught.  I never suggest you lie to anyone to get benefits.  You risk getting caught.  Dont do that.  

The differences between SSI and Social Security disability are explained here.  

You indicated yours was social security disability, not SSI.  

https://www.ncoa.org/blog/ssi-vs-ssdi-what-are-these-benefits-how-they-differ/

 

 

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