Overview of Disability
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Disability for Mental
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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.
Return to: Social Security Disability Resource Center, or read answers to Questions
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
Information on the following topics can be found here: Social Security Disability Questions and in these subsections:
Frequently asked questions about getting Denied for Disability Benefits | FAQ on Disability Claim Representation | Info about Social Security Disability Approvals and Being Approved | FAQ on Social Security Disability SSI decisions | The SSD SSI Decision Process and what gets taken into consideration | Disability hearings before Judges | Medical exams for disability claims | Applying for Disability in various states | Selecting and hiring Disability Lawyers | Applying for Disability in North Carolina | Recent articles and answers to questions about SSD and SSI
These pages provide answers to basic questions about pursuing disability benefits
How do I check the status of my Social Security disability claim?
Can you get temporary Social Security disability or SSI benefits?
How do you Win Benefits under Social Security Disability or SSI?
Can I Be Eligible For SSI And Social Security Disability At The Same Time?
How long does it take to be approved for SSI or Social Security disability?
The Difference Between Social Security Disability (SSD) and SSI – How are they different Part II