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dylatess
dylatess, ATTORNEY
Category: Social Security
Satisfied Customers: 3427
Experience:  37 plus years of SSD practice
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I get SSI not full Social Security. I retired at age 49, had

Customer Question

I get SSI not full Social Security. I retired at age 49, had to go thru heck to get my disability approved, and was told I was only entitled to X amount of money.
JA: Thanks. Can you give me any more details about your issue?
Customer: I had to withdraw money out of 401 K account and was taxed at about 47% rate because I was not over 50 at the time I retired.
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Submitted: 9 months ago.
Category: Social Security
Expert:  lev-tax replied 9 months ago.

If you are disabled at the time you took 401k distribution - you may claim an exception from early distribution tax.
However the money you took out will be subject to regular income tax.

All these calculations are done on your individual tax returns.

Customer: replied 9 months ago.
I was disabled at the time I took the 401k distribution, but it wasn't approved until I took out my money completely in 2007 I believe the tax was withheld automatically.
Customer: replied 9 months ago.
I had no earned income from 2003. I am a viet Nam vet and rely strictly on my SSI and my Viet Nam Compensation.
Expert:  lev-tax replied 9 months ago.

Correct,

But withholding is not your actual tax liability.
Your actual tax liability will be calculated on your tax return.
So any withholding will be CREDITED toward your tax liability - and if your actual tax liability is less - you will be getting a refund.
If you were disabled - and form 1099R doesn't indicates that - you would need to file form 5329 with your tax return and claim disability exemption.

Let me know if you need any help with reporting.

Customer: replied 9 months ago.
No. I don't have the funds for that. Thank you for your assistance.
Expert:  lev-tax replied 9 months ago.

What is the total amount of your distribution?

Customer: replied 9 months ago.
Please cancel my account. Thank you very much.

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