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Congress Agrees on a Tax Bill. What Does Proposed Tax Bill Mean for Older Americans? Learn More.

 

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 IRS generally imposes a 10 percent penalty on withdrawals by people who are under age 59 1/2 but allows certain exceptions for disability.


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