Will SSDI be reduced if I rollover traditional IRA to Roth IRA? Taxable income increase concern

I found a way to solve SSDI impact of IRA rollover, watch this: https://www.youtube.com/watch?v=bXoaQwcZ1nw

I've been through this rodeo before, and let me tell you, it's a doozy. From what I understand, SSDI isn't means-tested like SSI, so your assets shouldn't affect your eligibility. However, and this is a big however, the taxable income from the rollover could potentially push you over the substantial gainful activity (SGA) limit. You might wanna talk to a financial advisor or someone at the SSA to get the nitty-gritty details for your specific situation.

Ugh, the whole system is so confusing! 🤯 I swear they make it complicated on purpose. Good luck figuring it out, OP. Let us know what you find out!

I found a way to actually get someone on the phone at SSA to ask about this stuff. There's this site called claimyr.com that has a calling tool. It dials through the phone menu, stays on hold, and then connects you when a real person picks up. It costs $20, but it saved me hours of hold time. Might be worth it if you need specific answers.

Here's the deal with SSDI and IRA rollovers: 1. SSDI benefits are not means-tested, so the amount of money in your IRA doesn't affect your eligibility. 2. However, the taxable income from converting a traditional IRA to a Roth IRA could potentially impact your benefits indirectly. 3. The conversion is treated as income in the year it occurs, which could: a) Make a portion of your SSDI benefits taxable if your total income exceeds certain thresholds. b) Potentially affect your eligibility for other income-based programs or benefits. 4. It shouldn't affect your SSDI payment amount directly, as SSDI is based on your earnings record, not current income. 5. Be aware of the substantial gainful activity (SGA) limit, which is $1,470 per month for non-blind individuals in 2023. My advice? Consider spreading the conversion over several years to minimize the impact on your yearly income. And definitely consult with a tax professional or financial advisor who specializes in disability benefits before making any moves.

have you considerd just not reporting the rollover? 😏 what the government doesnt know wont hurt em right lol

I went through something similar last year. Ended up not doing the rollover because I was too worried about messing up my benefits. The peace of mind was worth more than the potential tax savings for me. But everyone's situation is different!

Quick question - how long have you been on SSDI? If it's been less than 24 months, there might be some additional considerations to keep in mind.

Not to hijack the thread, but has anyone else noticed that the SSA's website has been extra glitchy lately? Tried to check my benefit status yesterday and kept getting error messages. 🙄

Remember, whatever you decide, document EVERYTHING. Keep records of all your communications with SSA, any calculations you do, and the reasoning behind your decisions. It'll save you a headache if you ever get audited or have to appeal anything.

Just wanted to add another perspective here - I actually did a partial Roth conversion while on SSDI about two years ago. I worked with a CPA who specializes in disability benefits, and we did it in smaller chunks over three years to keep the taxable income manageable each year. The key thing that helped me was calculating exactly how much I could convert each year while staying well under the SGA limit and avoiding the income thresholds that would make my SSDI taxable. It's definitely doable, but you really want to run the numbers carefully first. The peace of mind from having professional guidance was worth every penny!