NUA – Disability Triggering Event
Is disability a triggering event for NUA only if you are self-employed? If so, then is being on disability and non self-employed eligible to be considered separation from service?
Is disability a triggering event for NUA only if you are self-employed? If so, then is being on disability and non self-employed eligible to be considered separation from service?
Permalink Submitted by Alan - IRA critic on Wed, 2019-04-03 02:06
Yes, disability as a triggering event is limited to the self employed, although the tax code is not consistent with IRS Pub 575. But this is probably a moot point, since an employee who is disabled according to Sec 72(m)(7) is likely to qualify using separation from service as the triggering event.