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Information about all aspects of finances affected by a serious health condition. Includes income sources such as work, investments, and private and government disability programs, and expenses such as medical bills, and how to deal with financial problems.
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403(B)/ TSA Plans

If You Become Disabled

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If you become disabled as defined by your Plan, you can withdraw money from your TSA without an early distribution penalty.  You will, however, have to pay income taxes on the distribution.  The money will be counted in with your "ordinary income," meaning it gets added to the rest of your income that year before the tax is calculated.

Some plans define disability with the same wording as in the Social Security law, such as with respect to Social Security Disability Insurance law. To learn more, including how to increase the chances of a favorable determination, see: SSDI 101.

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