Can I use 401(k) for medical?

[mssassafras]

Good evening all and happy December 18th
On Monday 13th I ignored the little voice in my head to put chains on my shoes, slipped and fell on the ice. Fell on my bum, didn't feel hurt. That evening the soles of my feet were numb. Two days later I went to the chiropractor hoping an adjustment could make what ever triggered my sensory issues to subside. No such luck. Numbness from pelvic region down. Today, everything is much worse. Trouble walking and felt slightly impaired driving home. Knew I probably shouldn't but took a hot bath anyway. At least I had pins and needles in my feet, better then what there wasn't before. Now of course I can only shuffle around. Anyway...my question is...
When the company I work for was bought by a larger company December 2009 our 401(k) accounts were "frozen". As it is the end of December I have used every bit of my flex fund +. If I go see my neurologist he will probably want MRIs or my brain/spine to see if any of my little spots are creating an internal light show. Does anyone know if I would be able to get money from my "frozen" 401(k) ? Should I just wait and shuffle it out until next year?

[Redwings]

"Hardship" withdrawals from a 401(k) can be made to cover unreimbursed medical expenses. However, employers are not required to allow them. So whether you can get a hardship withdrawal from your employer's program is entirely up to your employer. You'll have to check with your HR department. Even if allowed, it could take a few weeks, so a withdrawal will put you into next year anyway. That might not be such a bad thing because it means delaying your tax penalties until next year.

You can google 401k hardship withdrawals to find out more (including about tax penalties), but here's a place to start: http://www.401khelpcenter.com/401k_e...l_article.html.

[wkikta]

I don't understand how they can 'freeze' your 401(k) since it is your money, not theirs. If they won't release the money, may be Lawyer time. Before you do that though, make sure you understand all the rules for the plan.

[mssassafras]

Thank you Redwings and wkikta.
When the company I worked for was bought out, the new company requested an IRS audit on the 401(k). I do not understand why. We have been told the process can take up to 18 months and until then our accounts are frozen. My boss did contact HR for me about the hardship withdrawl. HR replied that I would need to call JP Morgan.
As my walking has become more difficult I made an appointment with my Neurologist for tomorrow. I won't receive the bill until next year, maybe I can make small payments. If it even comes to that. Maybe when I fell on the ice I bruised something that is causing all the numbness. Maybe I am just being paranoid.
Thanks again for listening, Happy Holidays and Merry Christmas to all.

[dstreett57]

Just so every one knows, if you end up on Disability you are allowed to begin drawing a regular amount a month from your 401k without penalty. You will need to be on Long term disability from work (or a private policy if you had one) or Social Security Disability (or both of course).

Many 401k administrators are not up on these regulations, so you may have to find the relevant government regulations on line your self and educate them. JP Morgan told me I would have to take a loan on 1/2 my 401k amount and then simply not repay it. This was completely bogus!

Again, once you are on full time disability it is just like you are retired and you may set up regular monthly payments from your 401K. Of course, ideally you would want to avoid doing that until you reach retirement age, as disability payments (from Social Security or LTD policies) end around retirement age. Sometimes, though, you need every penny you can get access to in order to get by.