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I have become very ill and need advice!

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Anonymous
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Re: I have become very ill and need advice!

That is why you don't cash out. You take a loan on it and when paying back you are paying yourself interest.
Message 21 of 26
Anonymous
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Re: I have become very ill and need advice!


@Anonymous wrote:
That is why you don't cash out. You take a loan on it and when paying back you are paying yourself interest.

Quick question; are people still able to take out a loan on their 401k if they're no longer working?

Message 22 of 26
Pway
Valued Contributor

Re: I have become very ill and need advice!


@Anonymous wrote:

@Anonymous wrote:
That is why you don't cash out. You take a loan on it and when paying back you are paying yourself interest.

Quick question; are people still able to take out a loan on their 401k if they're no longer working?


No, I didn't think that was an option.  They give you the option to roll over or cash out your 401k. 

Thank you for the wealth of knowledge I have learned from these forums. I am logging off as of November 9, 2022. I wish everyone great success.
Message 23 of 26
Anonymous
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Re: I have become very ill and need advice!


@Anonymous wrote:
That is why you don't cash out. You take a loan on it and when paying back you are paying yourself interest.
@humuhumunukunukuapua'a wrote:
You cannot take out a loan on a 401k when you are no longer working.

 

Message 24 of 26
red259
Super Contributor

Re: I have become very ill and need advice!

First step is to contact the medical providers and see what they can do for financial hardship to help lower the costs (medical providers can be somewhat flexible in situations like these). You should not apply for more credit cards if you have no income, because if you lie about your income and then end up in bankruptcy later on you will be screwed and will probably not get the debt discharged. I'd avoid any loans that will have interest soo high that you have no chance to pay it back, especially because they will want to know your income and like with the credit cards you will have a problem if you are not honest about income and then default.

;
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Message 25 of 26
Anonymous
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Re: I have become very ill and need advice!

Big problem with raiding your 401k is that retirement accounts are protected in the event of bankruptcy.

Message 26 of 26
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