Fort Wayne, IN asked in Social Security for Indiana

Q: If my wife receives SSDI and withdrawals from 401k will she lose her benefits

Do we need to report the withdrawal to SSDI

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1 Lawyer Answer

A: No, your wife would not lose her SSDI benefits if she withdraws from her 401k retirement. Since individual retirement plans have no effect on SSDI eligibility, your wife would not have to report 401k withdrawals to Social Security. She would report things such as her new address if she moves or a change in her direct deposit information, as well as any wages earned from returning to work.

Be aware that retirement plan income can stop a person from receiving SSI or may reduce the amount of monthly SSI payments. For more information about reporting to Social Security when you receive SSI, go to https://www.ssa.gov/ssi/text-report-ussi.htm.

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