If withdrawals from the account for the calendar year exceed the Qualified Disability Expenses, the individual may be subject to income tax, plus an additional 10% penalty. Consult a tax professional for additional guidance.
A withdrawal used for a non-eligible expense could affect your eligibility for SSI benefits, Medicaid or other means-tested benefits under federal or state programs. A withdrawal that is applied to a housing expense in any month after the month of the withdrawal could impact SSI benefits.
