Ask Me Help Desk

Ask Me Help Desk (https://www.askmehelpdesk.com/forum.php)
-   Investing (https://www.askmehelpdesk.com/forumdisplay.php?f=181)
-   -   401k Disability withdrawal (https://www.askmehelpdesk.com/showthread.php?t=240793)

  • Jul 23, 2008, 11:28 AM
    stormy602
    401k Disability Withdrawl
    I have been unemployed from my job of 25 years for the past three years. I am unable to work due to physical and mental disabilities. I am 46 years old and am about to make my second withdraw from my 401k. I have read that if disabled, the 10% penalty can be waived. I am awaiting a court date for my Social Security permanent disability. If I receive it, can I recoup my 10% penalties, as I was disabled at the time of the withdraw, but it was not finalized at the time. Thank you.
  • Aug 9, 2008, 09:41 PM
    MukatA
    The exception to Early Withdrawal penalty includes
    *if you are totally and permanently disabled,
    *You have deductible medical expenses (medical expenses that exceed 7.5% of your adjusted gross income).

    Also you can withdraw due to Hardship. Check with your plan administrator.
    Many 401(k) plans allow employees to make a hardship withdrawal because of immediate and heavy financial needs. Generally, hardship distributions from a 401(k) plan are limited to the amount of the employee's elective deferrals.
    Read Your U.S. Tax Return: Elective Deferrals 401(k) Plans

  • All times are GMT -7. The time now is 01:39 PM.