I don’t know how old you are, but isn’t there a new rule that you can take your 401K out without penalty if you are 55 and no longer working.
I am 59 but husband is 57.
So he’s over 55 and he is no longer worker. Husband DID get approval for SS disa just this past week in fact. Right now he should be eligible to get at that 401K for being disabled but see, like I said, we really don’t need it now. I mean he’s GOT the disa. money now. It was that first six months with his company’s little $200 a week short term disa, which we were extremely grateful for as they didn’t have to do that as it’s not a benefit....and it DID provide us our much needed health insurance. Most folks don’t even get this. Then we had a couple of months with NO money at all and we STILL had to pay the COBRA, and again, we couldn’t get at the 401K money as it was too risky to take on the premise of being disabled, which IS allowed, without the assurity of being declared disabled by the SS. And you aren’t qualified for SSI if you have over $4,000 or some such in a 401K. I call it a Catch-22 as it makes no sense at all. Of course we could have used the 401K and fought it out with the IRS in terms of tax penalties but it seems to me that this could be handled way better.
As to your law about being over 55 and no longer working, well that sure makes sense to me. But it seems like there should be a reason why you aren’t working...like, duh, being DISABLED....and maybe you’re right.
Husband’s brother is a financial advisor and he didn’t think that 401K was touchable until age 59.5.
Our 401K is a lot of bucks in that husband saved all his life into it with employer matches, stock splits, etc. If I had to I would have taken the funds and fought with the IRS but it’s like everything else with the gubmint...IT MAKES NO SENSE AND HAS NO BASIS IN REALITY.
Now we got the SS disability and don’t need the 401K.
Heh.