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Ok, to make a long story short, I did something stupid....I went with a 401K that my employer is linked with, Fidelity. Apparently they are scammers and cons. I never expected to need money for a surgery, but thats what I need. I don't make the money to pay for this surgery on my own, and I don't have any other means...and the medical insurance I have is craptastic, as they won't pay for the surgery unless I cough up $1,000 plus 20% of the surgery bill upfront.

I went to my 401K to withdrawl enough to cover this, and was told "NO"! WTF?!!! I'm in need of a surgery that could save me from getting an infection in my foot, possibly causing me to lose my foot or leg, and they are telling me I can't have any of MY MONEY! There is more than enough money in my account, and it's not like I want ALL of the money in my account.

While I am fighting this corruption, I'm wondering if there isn't an HONEST 401K organization out there who will let you withdraw your money when needed, and not harass and persecute you because you need access to YOUR MONEY.

Are there any HONEST, TRUSTWORTHY 401K organizations out there who will let you have access to your money when you need it for things like medical issues without harassing and persecuting you because you want your own money?!?
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Ok, to make a long story short, I did something stupid....I went with a 401K that my employer is linked with, Fidelity. Apparently they are scammers and cons. I never expected to need money for a surgery, but thats what I need. I don't make the money to pay for this surgery on my own, and I don't have any other means...and the medical insurance I have is craptastic, as they won't pay for the surgery unless I cough up $1,000 plus 20% of the surgery bill upfront.

I went to my 401K to withdrawl enough to cover this, and was told "NO"! WTF?!!! I'm in need of a surgery that could save me from getting an infection in my foot, possibly causing me to lose my foot or leg, and they are telling me I can't have any of MY MONEY! There is more than enough money in my account, and it's not like I want ALL of the money in my account.


Sorry for your troubles.

Please be aware: Your employer is the one setting the rules for the 401(k) plan. Fidelity is only implementing the rules as your employer has told them to do. So, I would say that your beef is more with your employer than with Fidelity.

While I am fighting this corruption, I'm wondering if there isn't an HONEST 401K organization out there who will let you withdraw your money when needed, and not harass and persecute you because you need access to YOUR MONEY.

Are there any HONEST, TRUSTWORTHY 401K organizations out there who will let you have access to your money when you need it for things like medical issues without harassing and persecuting you because you want your own money?!?


As you were told in previous threads https://boards.fool.com/401k-options-31842774.aspx?sort=whol... and https://boards.fool.com/how-to-get-401k-money-out-32031695.a... where you were ranting about corrupt 401(k) providers and 401(k) scams, the only 401(k) that you can sign up for is one that is associated with your current employer. So trying to seek a 401(k) provider other than the one that your current employer provides is pointless.

As far as being able to get your own money without having to follow the rules your employer has put into place would be to quit your job. Then you could access the money and roll it over or withdraw it, as you see fit. Just be aware that if you are under 59 1/2 and don't meet any of the criteria for waiving early withdrawal penalties, you will end up paying income taxes at your marginal rate, plus a 10% penalty, on any amount withdrawn. You can see the penalty exceptions in IRS Pub 590-B https://www.irs.gov/pub/irs-pdf/p590b.pdf

Good luck!

AJ
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IRS rules do allow for retirement plan loans, the maximum loan size is either (1) half of your vested 401(k) balance or (2) $50,000, whichever is smaller...

Perhaps you could look into this option.

Tim
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I do sympathize with your health issues, but Fidelity is a well respected financial institution and has been mentioned, the terms of your plan are determined by your employer and the IRS. Some 401k plans offer loan terms, but if you do not qualify or do not have sufficient funds to borrow or are trying to borrow too much, that may not be an option.

If your credit is decent, here's a website that rates medical loan providers, including tips on how to choose a lender. Sometimes a doctor will offer financing for medical procedures. And your health insurance company may offer programs to help you cover your share of the treatment as well. I would explore all of these options.

https://www.finder.com/personal-loans/compare-medical-loans

Fuskie
Who has never used this website and does not vouch for it but he wishes you the best in driving your healthcare...

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I have is craptastic, as they won't pay for the surgery unless I cough up $1,000 plus 20% of the surgery bill upfront.


if you have health insurance, even crappy one, $1,000 plus 20% would not be due upfront. You are likely not to even see the bill for 3-6 months. Generally the only time doctors/hospitals ask for the money upfront would be if you are paying the "not covered price" or "no-insurance/cash price". Even then the doctor should be willing to work with you to finance the procedure even if it is considered elective and not covered by insurance.

Not to mention, asking for 20% of an unknown and indeterminable amount upfront does not pass the sniff test. With so many unknowns (how many stitches, what level of anesthesia is needed, how many physical therapy visits, etc.), it is impossible to know what that 20% would be. Given that doctor's can't know the actual bill until you have the procedure (part of the 3-6 month delay mentioned above), the 20% of the total cannot be determined up front and therefore can't be documented prior to getting the surgery.

Your issue may be with the selected doctor/facility. Asking for that kind of money up front sounds shady.


FWIW: To me, it sounds like you may have a very good plan because a $1,000 deductible is not common any more and is consider low in today's market. That tells me your company pays a lot for that plan and that your portion seems high to you but in reality with most other employers would be much higher.


I went to my 401K to withdrawl enough to cover this, and was told "NO"!

Likely this was a case of an incorrect term being used when you asked. Had you asked for a loan (a type of loan where you pay your own 401k account back) and provided documentation (likely a doctor's note stating the need for the surgery and the specific total amount upfront payment) the check would likely already be in your hand, but it would not have been a next day type of process. Fidelity is top notch but even as automated as they are, you are looking at a 2 week process at a minimum to satisfy all the legal signatures and plan documentation requirements. You would only be penalized if you left your employer prior to paying yourself back.

Sounds odd to me that they did not offer a hardship withdrawal option. It has been nearly 15 years since I worked at a 401(k) provider, but I remember plans had to offer a hardship withdrawal option to be compliant with government regulations.

Hope this helps.
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