Attorney’s fees to produce taxable income are deductible. Since part of the disability payments is included in gross income, part of the attorney’s fees is deductible. However, you treat them as a miscellaneous itemized deduction, which means:
You’ll have to run the numbers to see whether you actually get any tax benefit from deducting attorney’s fees.
A retirement plan that pays benefits based on contributions to individual accounts, plus accumulated earnings. Contributions are generally based on a percentage of salary or earned income.