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?

posted

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.

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