Terminal cancer - Wanted to cash out 401K
I am 57. Given 6 to 18 months to live. Wanted to fulfill some "bucket list" items. Found out I can't get my 401K money. I can borrow 50% but then I have to do a payment plan to put it back. I am still with my employer on short term disability which will lead to long term disability. It seems as though terminal cancer would be a good reason for allowing a cash out of a 401K. I am not going to live to use it to retire. But that is not in the "rules". My employer stopped contributing 2 years ago and I just stopped contributing. I had no problem cashing out another 401K I had with a former employer. This seems to hinge on the fact that I am still "with" my present employer.
I wonder if I can roll it over to an IRA and then cash out the IRA?
Any help appreciated.
Thanks
Comment on ebaines's post
Thanks ebaines. I just find it hard to believe that terminal cancer does not constitute all rules being pulled off the table and the money can be paid out. I'm not concerned about the penalties/taxes. My doctor will sign anything saying I have Stage 4B cancer that has metastasized to my colon, liver and lungs. This is not curable and final stage cancer. I just want to be able to use the money to improve the life I have left.
Also, the maximum loan repayment period is five years. So that means I would have to make a $400 a month payment to put the money back. It's ridiculous I have to put money back into a "retirement" plan when I won't live to the 59 1/2 years old to start collecting.
Thanks for letting me vent.