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punky
Returning Member

Can you withdraw from 401K to pay medical premiums without penalty?

My medical premiums were 19K in 2017 and are higher in 2018.  Can I withdraw money from my 401K to pay this with paying the 10% penalty.  We are not quite 59 1/2.

2 Replies
Rachel_W
Level 4

Can you withdraw from 401K to pay medical premiums without penalty?

Unfortunately, withdrawing money before you reach the age of 59 1/2 from your 401(k) in order to pay Medical Premiums is not an Exception to the 10% Penalty for Early Withdrawal.  

This Exception to the Penalty is only available for Unemployed Individuals who are withdrawing money from their IRA Account, not from a 401(k).   

Check out the TurboTax FAQ below to see if you might qualify for one of the other Exceptions to the 10% Penalty on Early Distributions Retirement Plans:

https://ttlc.intuit.com/replies/3301632

SweetieJean
Level 15

Can you withdraw from 401K to pay medical premiums without penalty?

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