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    kj35's Avatar
    kj35 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Mar 15, 2006, 08:07 AM
    401k distribution
    I have been be deemed permanently disabled & I have a 401k account but I'm only 33 years old. I received a letter from my job the says that the 10% may not apply due to my disablity but I have to contact a tax professional
    fredg's Avatar
    fredg Posts: 4,926, Reputation: 674
    Ultra Member
    		  
    #2

    Mar 15, 2006, 08:52 AM
    Hi, Ky,
    Here is a link with some good information:
    http://www.401khelpcenter.com/mpower...re_121902.html
    It basically says that you "may" be allowed to withdraw your money, if you are disabled; the same as the letter you received from your job.
    I would call your Plan Administrator, ask if it is in your plan whether you will have to pay the 10% early withdrawel penalty. This should already have been documented by your company.
    Then, I would call a CPA, reputable tax person, to help you with it. They can follow-up with you. You will also have to pay the 20% Federal taxes on the total amount you withdraw.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #3

    Mar 15, 2006, 10:12 AM
    FredG's analysis is right on! I have nothing to add!
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