PLease advise if I take out my 401k money & resign for disability reasons do I need to pay taxes on that money? Thank you Hicksville

In the future please pay attention to posting instructions. You posted this in the Introductions forum which is clearly marked as not for questions. I've moved this to the appropriate forum.

If you qualify for full disability you can start accessing your 401K without the 10% penalty. But you would still have to pay taxes on the income.

Quote:

---

Originally Posted by ScottGem

If you qualify for full disability you can start accessing your 401K without the 10% penalty. But you would still have to pay taxes on the income.

---

Just to amplify a bit on ScottGem's answer: if you are to not old enough to avoid the early withdrawal penalty based on age, then to avoid the 10% early withdrawal penalty based on disability you must be totally and permanently disabled - meaning you cannot engage in any substantial gainful activity because of a physical or mental condition, and a physician determines that the condition has lasted or can be expected to last at least a year or can lead to death.