Re: ? Re Roth IRA Eligibility and Disability Income

Hello, Phil and Arthur!
You wrote on Thu, 27 Oct 2005 04:47:27 GMT:

??>> Anyway, is my disability income considered a pension? I don't mean to
??>> be a dunce, but my employer has no "pension" per se. All we have is
??>> our 403b accounts, which is probably why they match at 200%. My not
??>> having entertained the possibility that my disability income might be
??>> considered to be a pension, is why it never occurred to me that the
??>> income should be reported on line 16. That's why I was thinking it
??>> should go on line 21....

PM> Definitely not line 21. See the 1040 instructions for lines 7 and 16.

??>> And that brings me to another question. My software asks if I were
??>> "totally and permanently disabled for any part of 2005." It's my
??>> understanding that how I answer this question determines whether that
??>> "Taxpayer was disabled" box under "disability status" gets checked.

PM> Ignore it for the time being. That doesn't go on the return, it just
PM> feeds the software. Off the top of my head, the only place I can think
PM> of that it would be useful to the software would be for the Schedule R
PM> credit, which you already know you don't qualify for, or if you took
PM> IRA or 403(b) distributions, which it sounds like you didn't.

Thanks very much for your responses. Very helpful. Phil, no, I have taken
no 403b or IRA distributions. Arthur, you say "retirement age for (my)
plan." I can retire from my current employer with 25 years of service at
any age (I am 44 and have 21 years.), or 15 years of service at age 62. If
I am unable to return to work at all, which hopefully will not be the case
but currently unknown, disability benefits continue till age 65. So, what
would you consider "retirement age for (my) plan?" When I would have 25
years, or age 65? In case you're wondering what the benefit of retirement
is considering we only have that 403b (vested from day one), it is paid
medical & dental insurance for life.

Regards, Margaret Wilson


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