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New Member
posted Mar 11, 2025 12:02:20 PM

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?

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1 Replies
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.

 

Please read this TurboTax Help article for more information.