If you have been diagnosed with cancer and are considering retiring or applying for disability benefits, it is important to consider the potential tax implications of these options.
Based on your age, you may be eligible for retirement benefits. Retirement benefits typically come from the Social Security Administration (SSA), a private retirement account, or through an employer pension. If you are unable to work because of your medical condition, you may be eligible for disability benefits. You may have access to one or more of these options:
Social Security Retirement Benefits: if you paid Social Security taxes while you were working, you may be able to begin collecting Social Security retirement benefits. Your monthly retirement payment depends on what you have earned over your work history and when you decide to retire: at your full retirement age, before your full retirement age, or after your full retirement age.
Employer-sponsored Retirement Accounts: your employer may offer you a retirement plan that you can contribute to and your employer may also make matching contributions (e.g., 401k plan, SIMPLE IRA, etc.). Your employer may also offer you a pension plan that is funded by the employer and gives you a specific retirement benefit.
Social Security Disability Insurance (SSDI) and Supplemental Security Income (SSI): are federal programs that provide financial assistance to people with disabilities, who are unable to work because of their medical condition. Both administered by the SSA (Social Security Administration).
Private Disability Insurance: you may also have a private short-term or long-term disability insurance plan that you purchased directly from an insurance company or one that your employer offers you as an employee benefit.
VA Disability Benefits: VA disability compensation pays a monthly payment to Veterans who got sick or injured while serving in the military and also to Veterans whose service worsened an existing condition. You may qualify for VA disability benefits for physical conditions as well as mental health conditions.
For more information about the types of disability insurance, visit TriageCancer.org/DisabilityInsurance.