https://ttlc.intuit.com/community/retirement/discussion/retirement-funds-distribution-for-disability/01/2864954#M187334 <P>My husband's company had a retirement fund for the employees.&nbsp; He retired due to disabilities, can the amount he receives from the fund be used for the disabilities each year?&nbsp; Will this lower our tax&nbsp;burden?&nbsp;</P> Mon, 23 Feb 2026 13:09:55 GMT LW33 2026-02-23T13:09:55Z https://ttlc.intuit.com/community/retirement/discussion/retirement-funds-distribution-for-disability/01/2864954#M187334 <P>My husband's company had a retirement fund for the employees.&nbsp; He retired due to disabilities, can the amount he receives from the fund be used for the disabilities each year?&nbsp; Will this lower our tax&nbsp;burden?&nbsp;</P> Mon, 23 Feb 2026 13:09:55 GMT https://ttlc.intuit.com/community/retirement/discussion/retirement-funds-distribution-for-disability/01/2864954#M187334 LW33 2026-02-23T13:09:55Z https://ttlc.intuit.com/community/retirement/discussion/re-retirement-funds-distribution-for-disability/01/2865903#M187424 <P><SPAN style="font-family:Arial, Helvetica, sans-serif;font-size:14px;">It depends. </SPAN><SPAN style="background-color:rgb(255,255,255);font-family:Arial, Helvetica, sans-serif;font-size:14px;">A plan </SPAN><A href="https://www.irs.gov/retirement-plans/plan-participant-employee/definitions" target="_blank"><SPAN style="font-family:Arial, Helvetica, sans-serif;font-size:14px;"><U>participant</U></SPAN></A><SPAN style="background-color:rgb(255,255,255);font-family:Arial, Helvetica, sans-serif;font-size:14px;"> may receive a distribution from a retirement plan because he or she became totally and permanently disabled. Even if received before the participant is age 59 ½, it is not subject to the 10% additional tax for early distributions, but must still be reported as income. The </SPAN><A href="https://www.irs.gov/retirement-plans/plan-participant-employee/definitions" target="_blank"><SPAN style="font-family:Arial, Helvetica, sans-serif;font-size:14px;"><U>plan document</U></SPAN></A><SPAN style="background-color:rgb(255,255,255);font-family:Arial, Helvetica, sans-serif;font-size:14px;"> will specify the terms and conditions that a person must meet to receive disability payments and will give instructions on how to apply for them.</SPAN></P><P>&nbsp;</P><P><A href="https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-disability#:~:text=A%20plan%20participant%20may%20receive,still%20be%20reported%20as%20income." target="_blank"><SPAN style="background-color:rgb(255,255,255);font-family:Arial, Helvetica, sans-serif;font-size:14px;">For more information</SPAN></A></P> Tue, 07 Feb 2023 15:09:38 GMT https://ttlc.intuit.com/community/retirement/discussion/re-retirement-funds-distribution-for-disability/01/2865903#M187424 ShirlynW 2023-02-07T15:09:38Z