We took an early withdrawal on my 401k in 2008. My spouse became disabled and we needed the money for medical & living expenses. Since the account was in my name but my spouse is the one that became disabled, do we qualify for the exception? :confused:

Unfortunately no -- the exception applies if you (the 401(k) account owner) are completely and permanently disabled. Having a spouse who is disabled does not eliminate the early withdrawal penalty on a withdrawal from your account.

That's what I was afraid of. Thanks.