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Tdem
Returning Member

Disability money from pension while on LOA

I was out of work for 6 months this year on a LOA and borrowed money from my pension. It was not taxed.  do I pay the taxes when I file this year?

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1 Reply
pmurphy3
Expert Alumni

Disability money from pension while on LOA

When you say you borrowed from your pension during your Leave of Absence, are you liable for repayment?

If it was a true loan, it is not taxable, provided that it is fully repaid.   If it was a distribution, it may be taxable based upon how much other income you have.   However, you can avoid the early withdrawal penalty if you can get a statement from your physician.

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