Legal Question in Disability Law in Tennessee

Penalties

I have 2 FMLA Cases that are chronic in nature. Both cases have just been updated. I am using a lot of time off for these conditions. I have been told (by a union steward) that the company may force me into their retirement system. I have a Thrift Savings Account (similar to a 401-K) that I would withdraw if the above happens. Since it will be a forced retirement (not voluntarily) and since it is FMLA related, will I be responsible for paying the 10% penalty since I am not 59 1/2 years old? I will have to apply and get approval from Social Security to retire on disablity which will be a separate retirement. I do realize that I will be responsible for paying taxes on the money I receive.

Thank you for your time and consideration in this matter.


Asked on 8/02/04, 4:41 pm

1 Answer from Attorneys
Dr. Michael A. S. Guth Tennessee Attorney at Law Assists Pro Se (without a lawyer) Parties

Re: Penalties

There is no reason that you have to close your thrift savings and put that into the 401K. I have separate 401K and IRA accounts. If you voluntarily choose to consolidate your accounts, you should not be surprised if you are stuck paying a penalty on the transfer. However, normally funds transferred from one retirement account into another do not require any penalty.

As far as your question on disability payments, you should look in your phone book for attorneys who claim they practice in Social Security law. Almost all of these attorneys will answer your question for free.

Mike Guth

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Answered on 8/02/04, 4:47 pm


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