View Full Version : Social Security and 401(k)
oiaaskme
Apr 2, 2012, 03:11 PM
The Social Security office clerk regards the 401 K as a "readily" available cash, as if it is in a bank account ready to spend, which is ridiculous. With 401 K, there are penalty for early withdrawals, before 59 1/2, which is what I prefer not to do. How can you explain this when they (Soc Sec) do not care?
ScottGem
Apr 2, 2012, 03:19 PM
First its not a good idea to piggyback your question on someone else's. This can lead to confusion. You should start a new thread. So I've moved your question to its own thread.
Can you please explain your question, it is not very clear at all. What does your having a 401(k) have to do with your Social Security?
Wondergirl
Apr 2, 2012, 03:22 PM
Are you wanting to take money out of S.S. or your 401(k)?
oiaaskme
Apr 2, 2012, 03:27 PM
First its not a good idea to piggyback your question on someone elses. This can lead to confusion. You should start a new thread. So I've moved your question to its own thread.
Can you please explain your question, it is not very clear at all. What does your having a 401(k) have to do with your Social Security?
Hi,
I am applying for SSI but was denied because of my 401 K. I have cancer, which is consider disability. Social Sec. say I have to use/exhaust my 401 K to less than 2000 before I can qualify for SSI.
oiaaskme
Apr 2, 2012, 03:31 PM
Are you wanting to take money out of S.S. or your 401(k)?
Hi,
I am applying for SSI but was denied because of my 401 K. I have cancer, which is consider disability. Social Sec. say I have to use/exhaust my 401 K to less than 2000 before I can qualify for SSI.
ScottGem
Apr 2, 2012, 03:34 PM
SSA has its rules. See here: Understanding Supplemental Security Income (SSI)-- SSI Eligibility (http://www.ssa.gov/ssi/text-eligibility-ussi.htm)
On the other hand, ERISA rules waive the 10% penalty is judged disabled:
401khelpcenter.com - When is a 401k Distribution Not Subject to the 10% Penalty? (http://www.401khelpcenter.com/401k_education/tenpercent.html)
ebaines
Apr 3, 2012, 05:58 AM
SG is correct - if you are disabled you do have acces to your 401(k) assets without penalty. You will have to pay taxes on any withdrawals at ordicnarty income rates.