If my only income was a lump-sum early withdrawal of my 401(k) plan and SSDI, do I have to file taxes?

Maybe. If your taxable income is high enough, you'll have to file.

You will be responsible for the taxes on your 401k early withdrawal. Also, depending on the size of your 401(k) distribution, some of your Social Security Disability Income (SSDI) might be taxable.

If your income isn't high enough to file, you must still file Form 5329 to pay the 10% early distribution tax on your 401(k) withdrawal. This penalty will apply unless you meet a Form 5329 exception. You might qualify for an exception if you took the distribution because you were totally and permanently disabled.


Ready to file?

You've got your forms. And we've got your back. There's only one thing left to do. Let's do this.


So how much will you get (or owe) this year? That’s the million-dollar question. We happen to have three very useful calculators to help you estimate your refund or balance due.

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