UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next
Author: duggg Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 767148  
Subject: Re: 401K Withdrawals Date: 3/28/2001 10:50 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
sdfewl asks,

My question (which I admit is marginally relevant to RE, but this board is the smartest place I know of for 401K questions) is: Can she withdraw the $5000 out of her 401K without paying the penalty. I'm also checking into whether she can get current disability and even better past disability. Man it has been awful to watch someone's financial health destroyed. She lives way below her former means (and did at that time). She's lived over one year with sporadic income at best.

According to http://www.pueblo.gsa.gov/cic_text/money/401k/401k.txt, the answer depends on her particular 401(k) plan.

In most cases, she can withdraw uninsured medical expenses that exceed 7.5% of her AGI, but she'll have to pay taxes on it as well as the 10% penalty.

However, if she is declared disabled as defined by the IRS and her 401(k) plan, there is no 7.5% limit and the 10% penalty is waived.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next


Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Berkshire Hathaway

Buffett's Biggest Mistake
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.