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I’m asking to see if anyone has experience with the process, not asking for alternatives. I need the money to save myself now, it’s not worth anything if I don’t live to retirement
Before you do that, did you explore every other possible option? Surely a personal loan or some other arrangement would be better
You can take a loan against your 401k
Rising Star
OP, there is usually an option to borrow for hardship reasons. Medical expenses is one of those reasons. You will need to ask whoever manages your 401K plan. They will be able to tell you and provide the process if your particular 401K plan is eligible.
I had to take this option once for a different circumstance. Be prepared to provide any information required that supports your claim. More info below:
https://www.irs.gov/retirement-plans/401k-plan-hardship-distributions-consider-the-consequences
You should be able to take a hardship distribution or a 401k loan. I have taken 401k loans before and the good thing about them is that you repay yourself back + interest.
I’ve done it for educational expenses. Doesn’t it clearly outline what needs to be done?
They’ll ask for some sort of documentation I assume. It’s a fairly straightforward process.
Yes. Also, during the pandemic there was a relief bill that allowed you to withdraw penalty free. I don’t know any of the conditions so talk to a CPA