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Does Investment Income Affect a Disability Annuity?
(Posted March 17, 2012)
Question 861: Can I re-classify my IRA as a Limited Liability Company (LLC) for a special investment vehicle? I have read that one cannot be an officer of a corporation while collecting an RRB disability.
Answer: Income from investments such as a 401(k) is considered "passive" so it usually will not affect a Railroad Retirement Disability Annuity.
Converting an investment to an LLC should not affect your disability payments.
But you should verify this with the Railroad Retirement Board. Their toll-free number is (877) 772-5772.
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