What are the rules for withdrawing money from retirement account (403B for educators) due to perm disability?
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Filed under: Retirement Planning
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This is all I can find:
"Withdrawal of 403(b) money is permitted in cases of permanent disability, as defined by the IRS. Consult your vendor or a tax professional for more details."
This means, no 10% penalty, you still have to pay taxes
Best would be to take small amounts yearly instead of lump sum to keep your tax bracket low – that’s why they tell you to consult a tax professional
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Word of useless advise. Keep an eye on those 403b investments.
Next couple of years are going to be rough for the stock markets
I would find a stable value fund and move money into it until the economy shows "some" signs of recovery