topic I retired on disability last year (2024). I withdrew my 401 early. Am I exempt from taxes because of my disability. in Retirement tax questions

I retired on disability last year (2024). I withdrew my 401 early. Am I exempt from taxes because of my disability.

jamfis2 — Wed, 28 Jan 2026 06:15:57 GMT

I paid 30% tax up front.

Re: I retired on disability last year (2024). I withdrew my 401 early. Am I exempt from taxes because of my disability.

DoninGA — Wed, 29 Jan 2025 22:51:42 GMT

What is the code in box 7 of your Form 1099-R?

Being disabled does not exempt you from entering distribution from the 401(k) on your tax return as ordinary income and being taxed at your current tax rate.

Re: I retired on disability last year (2024). I withdrew my 401 early. Am I exempt from taxes bec...

MinhT1 — Wed, 29 Jan 2025 22:48:52 GMT

Yes, if you are totally and permanently disabled, then you are exempted from the early withdrawal penalty from your 401(k) account. But you have to pay income taxes on the withdrawal.

Please read this TurboTax Help article for more information.