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BenefitsLink > Q&A Columns >

Stop, Look & Listen: Railroad Retirement Benefits Q&A

Answers are provided by Robert S. Kaufman

401(k) Withdrawals Do Not Affect a Disability Annuity

(Posted June 15, 2004)

Question 464: My husband is receiving a disability annuity. He wants to take his 401(k) and use that money to pay some bills, instead of rolling it over. Does this lump sum payment decrease his disability annunity payment?

Answer: Withdrawing 401(k) funds do not count as income for a disabled worker under the Railroad Retirement rules.

The 401(k) withdrawal might be taxable income for federal and state income tax purposes. You should consult with a tax accountant for authoritative information on income taxes.


Important notice:

Answers are provided as general guidance on the subjects covered in the question and are not provided as legal advice to the questioner or to readers. Any legal issues should be reviewed by your legal counsel to apply the law to the particular facts of this and similar situations.

The law in this area changes frequently. Answers are believed to be correct as of the posting dates shown. The completeness or accuracy of a particular answer may be affected by changes in the law (statutes, regulations, rulings, court decisions, etc.) that occur after the date on which a particular Q&A is posted.


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