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Disability distribution from a 401(k) plan


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Posted

A participant is receiving a distribution from their 401(k) due to disability.

they are taking a cash distribution.

Is 20% still withheld from the payment?

Guest Rosemary Raymer
Posted

In general, if it can be rolled over, you have to withhold. However in some instances a disabled person can avoid the 10% early withdrawal penalty.

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