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Do 401K Payments Affect Social Security Disability? Skip to content

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I receive Social Security disability payments. Can I withdraw funds from my 401(k) without penalty?

En español | Yes, you can probably withdraw money without penalty because of your disability, regardless of how old you are. But the funds will still count as taxable income when you file your tax return. The Internal Revenue Service generally imposes a 10 percent penalty on 401(k) withdrawals by people who are under age 59 1/2, but it allows certain exceptions for disability.

Published October 10, 2018

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