Can i to lower my taxes if I took a w/d from my 401k and now collect ssdi with no indication of return to work?

batchvi · ‎April 2, 2021

I lost my job due to disability and have not been working since 2019. I receive SSDI and want to know if I am qualified to select permanent disability to lower my tax bill after receiving a 1099R.

ThomasM125 · ‎April 2, 2021

To be considered disabled in the eyes of the IRS, you have to be unable to engage in gainful work because of a disability and it is expected to last at least a year or lead to death. You can exclude the penalty for early withdrawal of pension funds if it was because you became disabled.

https://apps.irs.gov/app/IPAR/resources/help/disabl.html

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ThomasM125 · ‎April 2, 2021

To be considered disabled in the eyes of the IRS, you have to be unable to engage in gainful work because of a disability and it is expected to last at least a year or lead to death. You can exclude the penalty for early withdrawal of pension funds if it was because you became disabled.

https://apps.irs.gov/app/IPAR/resources/help/disabl.html

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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Can i to lower my taxes if I took a w/d from my 401k and now collect ssdi with no indication of return to work?