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Thread: trading stocks or other on social security disability

  1. #1

    trading stocks or other on social security disability

    hello

    can you please answer the following or tell me where i might find the answers:

    would it be permissible to day trade or trade stocks or otherwise while receiving ssdi?
    what happens if the ssdi recipient makes a profit?
    what happens if the ssdi recipient makes a large profit?

    if this is a problem or would raise an alarm due to reports generated and sent to the irs and the ssa from the trading account?

    how about trading in an ira?

    would ira profits be not taxable, not reportable, and allowed until after 65 and only taxable and reportable at 65 or if the monies are withdrawn prior to 65?

    is it safe to assume once the recipient reaches 65 they automatically get regular ss and no longer ssdi?

    thank you very much for your kind attention

    please pardon the typing and format

  2. #2
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    I'm sorry to be bumping such and old thread, but I was wondering the same thing. Is stock or options trading considered income and would this impact SSDI?

  3. #3
    Yes, and trying to hide income made this way could be considered fraud.

    (KLD)

  4. #4
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    Quote Originally Posted by SCI-Nurse View Post
    Yes, and trying to hide income made this way could be considered fraud.

    (KLD)
    Does this mean that people on SSDI are not allowed to have an IRA or Roth IRA?

  5. #5
    The question was about stock trading.

    You can have an IRA, and manage it, but if you do any early withdrawal of funds from your IRA it would be considered income. Funds in your IRA can be counted against your eligibility for Medicaid as far as I know (asset limits).

    (KLD)

  6. #6
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    Thanks for the clarification, KLD. That makes sense.

  7. #7
    Kld the op asked if Ssdi would be affecte not ssi. It has always been my understanding that unless its earned income you won't be penalized. I don't see how trading a stocks on the Internet for personal self, could affect your Ssdi. Even if someone won the $100,000.00 power ball your Ssdi does not get affected. ONLY "earned" income. Someone please correct me if I'm wrong.

    If you diasability retire and are collecting ssdi, I was told by a tax man that you would not be penslized in early withdrawal. This was told to me. I haven't cashed in so I'm not sure. It would be wise to get 2or 3 professional opinions if any one was considering this.

  8. #8
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    Basically, the question I had was whether capital gains and dividends are considered substantial gainful activity or not. KLD answered that question.

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