Question

Retirement funds distribution for disability

Forum|Forum|3 years ago
February 7, 2023
1 reply
0 views

My husband's company had a retirement fund for the employees. He retired due to disabilities, can the amount he receives from the fund be used for the disabilities each year? Will this lower our tax burden?

Pension Plan

S

ShirlynW

It depends. A plan participant may receive a distribution from a retirement plan because he or she became totally and permanently disabled. Even if received before the participant is age 59 ½, it is not subject to the 10% additional tax for early distributions, but must still be reported as income. The plan document will specify the terms and conditions that a person must meet to receive disability payments and will give instructions on how to apply for them.

For more information

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"