Can I cash out an IRA if I am receiving Social Security Disability?I am on disability and Medicare. I have an IRA that I would like to take $50,000 out of to put down on a home (not sure what kind yet). Am I allowed to do this, and if so, can I do it tax free? I would appreciate your answer greatly. Thanks! If you are receiving Social Security Disability based upon your work activity (meaning that you were approved for SSDI on the basis of the work credits you accumulated versus being approved for SSI which is not based on work history), you can cash out an IRA if you wish to do so with no problems. Social Security Disability and Medicare are not need based disability programs, therefore they are not subject to income and resource limits as is the case with the SSI disability program. As to your question about the taxability of your IRA withdrawal, that really is a question for the IRS or your tax person. I hope this answers your question and that your home purchase goes well. About the Author: Tim Moore is a former Social Security Disability Examiner in North Carolina, has been interviewed by the NY Times and the LA Times on the disability system, and is an Accredited Disability Representative (ADR) in North Carolina. For assistance on a disability application or Appeal in NC, click here. Most popular topics on SSDRC.com Social Security Disability in North Carolina Common Mistakes to avoid after being denied for Disability Tips to Prepare for Filing for Social Security Disability or SSI Advice to Win SSD and SSI Benefit Claims Social Security Disability SSI Questions What is the difference between Social Security Disability and SSI? How to get disability for depression Getting disability for fibromyalgia SSI disability for children with ADHD What is the Application Process for Social Security Disability and SSI? Social Security Disability SSI Exam tips More Social Security Disability SSI Questions What makes you eligible for Social Security Disability or SSI? Related pages: Social Security Disability and assets Can You Be Denied Social Security Disability If You Have Money In A Savings Account? Does Social Security take into consideration gross earnings or net earnings? Social Security Disability and Money in the Bank Are Social Security Disability Benefits Taxable? What Determines If You Are Covered for SSDI (Social Security Disability) Benefits - The DLI Issue |
