Early Retirement Penalty
Jul 3, 2003
I am an HIV infected male residing in Texas and would like to know if and when I may become disabled, due to HIV/AIDS would I be eligible to withdraw my 401K and retirement without early retirement and IRS penalties?
Response from Ms. Franzoi
Distributions made from a 401(k) plan on account of a participant being disabled are not subject to the 10% excise tax but they would be subject to ordinary income taxes. With respect to your pension, the terms of the pension plan will govern what is available to a disabled participant. Your summary plan description would explain how the benefits will be handled in the event of disability. Some pension plans provide for immediate payment without an early retirement reduction, others continue benefit accrual, others have no provision at all, etc. To determine what the benefit would be under your pension plan in the event of your termination due to disability, you should review what your summary plan description says or contact your Benefits Department.
Get Email Notifications When This Forum Updates or Subscribe With RSS
This forum is designed for educational purposes only, and experts are not rendering medical, mental health, legal or other professional advice or services. If you have or suspect you may have a medical, mental health, legal or other problem that requires advice, consult your own caregiver, attorney or other qualified professional.
Experts appearing on this page are independent and are solely responsible for editing and fact-checking their material. Neither TheBody.com nor any advertiser is the publisher or speaker of posted visitors' questions or the experts' material.