Should I cash in 401k to pay medical coinsurance and copays?
jim m asked:
I owe $6000 for rental of a wound closure device and supplies
and around $2300. for cancer treatment coins and copays
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on Wednesday, September 23rd, 2009 at 12:00 am and is filed under Personal Finance.
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I owe $6000 for rental of a wound closure device and supplies
and around $2300. for cancer treatment coins and copays
September 25th, 2009 at 3:34 am
No, do not cash in your 401(K). It’s absoultly the worst financal decision one person can make. It’s like using a credit card that has 40% interest. You will be taxed for cashing out the 401(K) and you will have to pay back the loan at a certain time (usually 5 years) and pay a penalty that’s around 10%. Also when and if you put the money back into the 401(K) that you borrowed, when you do retire you’ll get taxed again!
Never cash out your 401(K)! Gary
September 25th, 2009 at 11:33 pm
Distributions are not subject to the early distribution penalty to the extent that you pay deductible medical expenses exceeding 7.5% of your adjusted gross income (whether or not an itemized deduction for medical expenses is claimed). Gary