Author Topic: Disable and a 401A,what to do?  (Read 1375 times)

silron

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Disable and a 401A,what to do?
« on: January 19, 2019, 07:39:39 PM »
hello and good day.i am new to this.10 months ago i had a stroke,and now i am receiving social security disability.i worked  for 19 years at my last job.i have a 401A retirement account,thanks to my last employer.I am 51 years old.the account and money i have not touch it yet.i have a family and i am doing the homework to find what to do with that money the best way i could .i have several questions and if any one here can guide me I'll be grateful.if i move the whole amount from 401a to a bank IRA account,do i pay a penalty?,do i pay income tax on the amount been roll over,like take tax out the amount before transferring to IRA account? next year income tax filing,will i have to report the amount rolled over? is the amount rolled over  consider as a income?.thanks

Dr Kidstache

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Re: Disable and a 401A,what to do?
« Reply #1 on: January 20, 2019, 09:43:31 AM »
I'm no retirement account expert so I don't have a lot to answer. But I am disabled (so sorry about your stroke). I *believe* a 401A is treated like 401K, 403B, etc in that you can rollover funds directly into a traditional IRA (note: very different from withdrawing funds). Since you are disabled, you are also able to withdraw the money penalty-free (just paying taxes like you would at retirement age). Here's a little basic info about 401As: http://www.retirementweb.com/401a-retirement-plans/
You can probably find out better answers to your questions by calling the company (Fidelity, TIAA-Cref, etc) that holds your 401A account.