Q: how are social security and long-term disability benefits are affected by a Pers benifit of $21,000. rollover or cash ?

A: When considering how Social Security and long-term disability benefits are affected by a PERS (Public Employees Retirement System) benefit of $21,000, it's important to understand the specific rules and regulations.

1. Social Security: In general, receiving a PERS benefit should not directly affect your Social Security benefits. However, if you receive a pension from a government job in which you did not pay Social Security taxes, your Social Security benefits might be reduced under the Windfall Elimination Provision (WEP).

2. Long-term Disability (LTD): LTD benefits can be affected by other income sources, such as PERS benefits. The specific impact depends on the terms of your LTD policy. Some policies may offset your LTD benefits by the amount you receive from PERS, while others may not consider PERS income when calculating your benefits.

Regarding the $21,000 PERS benefit, you typically have two options:

1. Rollover: You can roll over the funds into a qualified retirement account, such as an IRA or another employer-sponsored plan (if allowed). By doing this, you can maintain the tax-deferred status of the money and avoid immediate taxes and early withdrawal penalties.

2. Cash out: If you choose to cash out the benefit, you will likely face income taxes on the amount received. Additionally, if you are under age 59½, you may be subject to a 10% early withdrawal penalty.

Rolling over the funds into a trust may have specific implications depending on the type of trust and your individual circumstances. It is advisable to consult with a financial professional or attorney specializing in estate planning to determine if this is a suitable option for you.

In summary, a PERS benefit should not directly affect your Social Security benefits unless you are subject to the WEP. However, it may impact your LTD benefits depending on your policy's terms. Rolling over the $21,000 into a qualified retirement account can help you avoid immediate taxes and penalties, but cashing out will likely result in taxes and potential penalties. Consulting with a financial professional can help you make an informed decision based on your specific situation.