recently disabled

Bobbie · #1 Jan 26, 2006, 07:25 AM

I don't work anymore but still have a 401K @ my last job, Will a disable person still be taxed, if so what would be the best thing for me to do with my 401K. Thanks for your help. Bobbie

walt17 · Jan 29, 2006, 02:56 AM

Bobbie,
Income from your 401K will be taxed. Any other income will also be taxed unless it is specifically excluded by law.
To make susggestions on what to do with your 401K requires a lot more information (amount, needs, risk tolerance, etc.)
Walt

Bobbie · Jan 29, 2006, 10:17 AM

walt17, Thank you for your reply. I guess your answer still applies to this question or yet I don't know if I got my point across the last time, but will I be taxed when I take the money out of the 401k if I choose not to roll it over. Thanks for your help, this is a really cool website. Bobbie

walt17 · Jan 29, 2006, 03:43 PM

Bobbie,
If you do not roll the 401K distribution over to another tax deferred plan (e.g. traditional IRA) it will be taxable income. Also keep in mind that if you are not 59 1/2 there may be a penalty for early withdrawal.
Walt

Bobbie · Jan 30, 2006, 03:30 PM

Quote:

Originally Posted by walt17

Bobbie,
If you do not roll the 401K distribution over to another tax deferred plan (e.g. traditional IRA) it will be taxable income. Also keep in mind that if you are not 59 1/2 there may be a penalty for early withdrawal.
Walt

Walt, Well I am not 59 1/2 yet and want be for a while so I guess I will have to bite the bullet and pay the Gov.'nt their part. Thanks for your help and if anything comes to your mind on a safe place for the 401k keep me updated. Lee



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