Social security disability benefits and retirement fund cash out


Joined
Dec 22, 2014
Messages
2
Reaction score
0
I got sick while working and resigned to take care of my health. I applied for social security disability and in the meantime I cashed out my 401k from my old job (around 80 k) to support myself during this time of hardship.

Here is my question, should I get approved for social security disability benefits

1)Would I have to pay most of the benefits back when filing for taxes next year since the amount that I cashed out from my old 401k was 80 k (I believe their limit is 25 k and then you have to pay back like 80% of the benefits).

2)After cashing out 80 k from my old retirement account, this would place me slightly below the 24% tax rate for the year (84 k is the lower limit for the 24% tax bracket), would receiving the disability benefits add to the 80 k to bump me from the 22% rate to 24%?

Thanks for any information that can be provided.
 
Ad

Advertisements


Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top