What happens if I withdraw money for a non-eligible expense?

You’ll have to pay taxes on any non-eligible expense, plus a 10% penalty on the earnings portion of the withdrawal. A withdrawal used for a non-eligible expense, or for housing expenses even if they are qualified disability expenses, could affect your eligibility for Supplemental Security Income (SSI) benefits, Medicaid, or other much needed benefits under federal or state programs in any month after the month of the withdrawal.