Hi,

I lost my job of 30 years this year due to disability. I have been awarded Social Security Disability. Approved in Feb 06, first payment was August 06. I had 2 withdrawals from my 401K. The first had a 10% penalty, the 2nd did not because of the disability. My question is:

Is the disability retro active for the whole year or just from the approval date. If the 1st disbursement was after the disability approval date can I get a refund on it.


Thanks


Jim

You should be able to get it back if it was AFTER the approval. But what I suspect will happen is that the 10% will just be used as a credit against your tax liability for the year.

Thanks Scott,

On the present Disability structure every penny will help. I will check out the dates as you suggested.

If you can show that you were disabled the day you left your job, you should be able to get the 10% penalty back with little problem.

Thanks ATE. I will check dates. The disability law says there is a 5 month wait on funds. So if I got my first check in August, counting back 5 months would be March, so approved in Feb. Will look up date on money received into rollover as the disbursement was at the same time.

Thanks again


Jim

Glad to help!

Remember that you become disabled when you got injured, NOT when SSA says you were disabled.