Been on SSDI for several years. I'm under 60. Old employer offered an early distribution of 401K. Does my disability exempt me from being taxed on the early withdrawal?
01931
1 Replies
MinhT1
Expert Alumni
Mar 11, 2025 12:11:36 PM
Being totally and permanently disabled is one of the exceptions to the early withdrawal penalty if you are under 59 1/2.
But your 401(k) distribution will be subject to income taxes.