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How best to manage a medically retired multiple 401k plan?

We are looking to find a planner who can help us set up a way to maximize access to her funds to increase her quality of life.

Aug 22, 2016 by Rachel in  |  Flag
3 Answers  |  1 Follower
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Chris Schiffer Level 14

Rachel, The question is a little unclear, but I get the impression you have a family member that has retired early due to a medical issue and needs to access the funds in one or more 401k plans.

Generally, early distributions received from a 401k before reaching age 59½ receive a 10% early distribution penalty.

However, it is possible to withdraw the funds without penalty under certain circumstances: - Distributions made to you after you separated from service from an employer (layed off or retired) if the separation occurred in or after the year you reached age 55 - Distributions made because you are totally and permanently disabled. - Distributions made as part of a series of substantially equal periodic payments over your life expectancy or the life expectancies of you and your designated beneficiary. - Distributions to the extent you have deductible medical expenses that exceed 10% of your adjusted gross income (7.5% if you or your spouse is age 65 or over)

I hope this helps you navigate your options.
I can be reached at 908-821-9764 if you would like to discuss your situation in more detail.

Comment   |  Flag   |  Aug 24, 2016 from BASKING RIDGE, NJ

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0 votes
Chris Schiffer Level 14

Rachel, The question is a little unclear, but I get the impression you have a family member that has retired early due to a medical issue and needs to access the funds in one or more 401k plans.

Generally, early distributions received from a 401k before reaching age 59½ receive a 10% early distribution penalty.

However, it is possible to withdraw the funds without penalty under certain circumstances: - Distributions made to you after you separated from service from an employer (layed off or retired) if the separation occurred in or after the year you reached age 55 - Distributions made because you are totally and permanently disabled. - Distributions made as part of a series of substantially equal periodic payments over your life expectancy or the life expectancies of you and your designated beneficiary. - Distributions to the extent you have deductible medical expenses that exceed 10% of your adjusted gross income (7.5% if you or your spouse is age 65 or over)

I hope this helps you navigate your options.
I can be reached at 908-821-9764 if you would like to discuss your situation in more detail.

Comment   |  Flag   |  Aug 24, 2016 from BASKING RIDGE, NJ

1|600 characters needed characters left
0 votes
Chris Schiffer Level 14

Rachel, The question is a little unclear, but I get the impression you have a family member that has retired early due to a medical issue and needs to access the funds in one or more 401k plans.

Generally, early distributions received from a 401k before reaching age 59½ receive a 10% early distribution penalty.

However, it is possible to withdraw the funds without penalty under certain circumstances: - Distributions made to you after you separated from service from an employer (layed off or retired) if the separation occurred in or after the year you reached age 55 - Distributions made because you are totally and permanently disabled. - Distributions made as part of a series of substantially equal periodic payments over your life expectancy or the life expectancies of you and your designated beneficiary. - Distributions to the extent you have deductible medical expenses that exceed 10% of your adjusted gross income (7.5% if you or your spouse is age 65 or over)

I hope this helps you navigate your options.
I can be reached at 908-821-9764 if you would like to discuss your situation in more detail.

Comment   |  Flag   |  Aug 24, 2016 from BASKING RIDGE, NJ

1|600 characters needed characters left