Welcome! | Ask A Question

 
 
Question

Asked 3/17/2009

Disability and 401k withdrawal = do I pay the penalty? Can I get the status changed?

My husband suffered a traumatic brain injury last Feb. He has been in rehab for the past year in Colorado & Missouri. In May, we pulled out his 401k to pay off bills due to his not working - although we are receiving work comp, it was too stressful trying to keep up with excess debt. My question is this: On his 1099-R it does not say disability - it reads early withdrawal. Can I go back and get the disability status - since he hasn't worked for a year, and is about to move to Omaha to another rehab for the next 6 months? Although he is better than anyone, especially the doctors, ever expected... they are not optimistic that he will ever hold down a job again. We are also currently getting SSI disability payments that kicked in last December. Please advise! I'm working on our taxes now... and we fell slightly below the 7.5% medical deduction. I had 10% already taken out - not state though. And probably not enough federal... any ideas?

 
 
 
 
Answers

Answer 1/2 - Submitted 3/17/2009

Unless you had the award letter, of permanent disability, and included it in your distribution request to the 401(k) administrator.. they cannot change the 1099r--- not sure on the taxes if they can adjust... hopefully we have an accountant on here somewhere.....

 
 

Answer 2/2 - Submitted 3/21/2009

The instructions for the form you want to look at are here:
http://www.irs.gov/pub/irs-pdf/i5329.pdf

A further definition you will need, from the IRS website:
Permanent and total disability. You are permanently and totally disabled if you cannot engage in any substantial gainful activity because of your physical or mental condition. A physician must certify that the condition has lasted or can be expected to last continuously for 12 months or more, or that the condition can be expected to result in death.

Since your husband is already certified for SSI, getting this type of physician's letter (or two, for safety) shouldn't be difficult. Keep them for your records. Use the Form 5329 to eliminate the penalty, and do not worry about getting corrected 1099's.

 
 
 
 
Answer This Question Now

Type your Answer in the box below and post your answer.

Learn more about how this works

 
 
 

Related Questions (Ask a New Question)

 
Head injury

6 yr old had a head injury @5 months ago ever since he has head aches with nausa and vomiting at least 2x a week he did not do this before he is beganing to lose his appertite

See Answers

 
Head injury?

My daughter hit her head on a hard wood floor on monday night. do you think she has serious injury since its friday night? do i take her to hslpital she has a headache .

See Answers

 
Best hospital in broward county florida for head injury?

What is the best haspital in broward county florida for the treatment of head injury due to accident?

See Answers

 
Related Questions

Head injury


6 yr old had a head injury @5 months ago ever since he has head aches with nausa and vomiting...

 

Head injury?


My daughter hit her head on a hard wood floor on monday night. do you think she has serious...

 

Best hospital in broward county florida for head injury?


What is the best haspital in broward county florida for the treatment of head injury due to...

 

Head injury


If you fall and hit your head andit leave a knot and you throw up

 

Head injury


Should i b seen in the er after getting hit on the top of my head at full force with hood...

 

After an head injury 8 years passed should there still be pain?


I had an head injury 8 years ago and was told i suffer cerebral spinal fluid as well and had...

 
 

See more Head Injury questions

 
 
 
 
 

Ask A Question

Ask a new question about
Head Injury: