Saturday, January 30, 2010

Social Security Disability Claim and 401k withdrawal

The following questions are from Niuvis:

"Good Evening, I am very glad I found your blog. I have been visiting every day since I found it and most of the questions I had about disability have been answered by reading your postings. I have 3 simple questions that I would like for you to answer if possible:

1. Do I have to report to some one that I just received a deposit in my bank account today for $3,500.00 and it has to do with my 401k plan which I requested to withdraw from my previous employer?

2. How does it affect my disability claim? I never reported I was expecting this money because I really wasn't. That was a decision I made much after I filed for disability on 1/5/2010.

3. How could I confirm that a fax I sent to my disability examiner was in deed received by him? He sent me some forms to fill out and I faxed them all to the number on the form. I have a confirmation that the fax was transmitted but I don't know if he ever processed it or over look it. I called him once and he didn't respond my call so I am afraid of calling again.

Thank you in advance for your response.


Regarding your first question: If you filed a Social Security disability claim only, the money from your 401K has no effect upon your eligibility for disability benefits.

Social Security is not a need based disability program, so there are no income or resource limits. Income and resources only apply to SSI disability, because, by contrast, it is a need based disability program.

You should report the money to Social Security, if you filed for SSI. And, if you filed for both disability programs simultaneously, the money only affects the SSI portion of your disability claim.

Regarding your second question: As I stated above, the money will only affect SSI eligibility versus Social Security disability eligibility. Most individuals who file for both SSI and SS disability benefits lose their eligibility for SSI when they become entitled to their Social Security benefits. That's because Social Security benefits are usually over the income limit for the SSI program.

Regarding your third question: You should call the disability examiner again, there is always a possibility that he missed the message or even that he has not had time to give you a confirmation call. You have the right to know whether or not your fax was received, so don't be afraid to at least call one more time. Most disability examiners try to respond to their messages timely.

Return to the Social Security Disability SSI Benefits Blog

Other Posts

Do You Get Medicare Or Medicaid From Social Security Disability?
What is The Chance of Winning an SSA Disability Appeal?
Social Security Disability SSI and Cerebral Palsy
Will Social Security Disability Pay For X-rays and a MRI to Evaluate My Case?
If Social Security Disability sends you to a Consultative Medical Exam, will it be done by your own doctor?
If I Receive SSD Benefits and I Begin To Work And Earn Below The SGA Limit, How Much Does Social Security Deduct From my Benefits?
Social Security Disability Re-evaluations a.k.a. reviews



Blogger Niuvis said...

Thank you very very much for your answers and for taking the time to respond in details. I saw the answer yesterday but when I try to respond, the computer doesn't process the word verification entry and I gave up trying. Lets see if it takes it this time.

Thank you again for your help and response. It really helps me while I go through all this process which is new to me.
I would like to post other questions in the future if you dont mind.

Have a great evening.

8:46 PM  

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