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I would like to withdraw some of the money to pay a medical bill is it possible to do this?

May 12, 2017 by Tanya in  |  Flag
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Herbert N Glass Level 18

Hi Tanya,

If you are a participant in your employer's Qualified Retirement Plan (such as a 401(k) plan), and if such plan allows "Hardship Withdrawals" then you may be able to receive what is called a Hardship Distribution from the plan. The reason I say "may" is because the plan document must state that medical expenses qualify as a reason to receive the hardship distribution. And besides that, you must demonstrate or attest to the Plan Administrator that you do not have access to money elsewhere to use to pay such medical bills.

There may be another hoop to jump through to qualify to receive the hardship distribution is: If the plan has a participant loan feature in it, then the law requires that a participant MUST take a maximum loan from the plan before being able to make a hardship withdrawal from the plan.

To find out what your plan allows, you should request such information from the person or department that takes care of such matters at your place of employment.

I hope this information adequately answers your question and helps you to pursue a solution to your current challenge.

Sincerely,

Herbert N. Glass, Certified Pension Consultant Bingham Farms, MI 48025 www,glassretirement.com

Comment   |  Flag   |  May 12, 2017 from Franklin, MI

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