I got sick while working and resigned to take care of my health. I applied for social security disability and in the meantime I cashed out my 401k from my old job (around 80 k) to support myself during this time of hardship.
Here is my question, should I get approved for social security disability benefits
1)Would I have to pay most of the benefits back when filing for taxes next year since the amount that I cashed out from my old 401k was 80 k (I believe their limit is 25 k and then you have to pay back like 80% of the benefits).
2)After cashing out 80 k from my old retirement account, this would place me slightly below the 24% tax rate for the year (84 k is the lower limit for the 24% tax bracket), would receiving the disability benefits add to the 80 k to bump me from the 22% rate to 24%?
Thanks for any information that can be provided.
Here is my question, should I get approved for social security disability benefits
1)Would I have to pay most of the benefits back when filing for taxes next year since the amount that I cashed out from my old 401k was 80 k (I believe their limit is 25 k and then you have to pay back like 80% of the benefits).
2)After cashing out 80 k from my old retirement account, this would place me slightly below the 24% tax rate for the year (84 k is the lower limit for the 24% tax bracket), would receiving the disability benefits add to the 80 k to bump me from the 22% rate to 24%?
Thanks for any information that can be provided.