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Im unemployed. Can I take an early withdrawal from my 401k to pay Cobra insurance bills and taxes?

April 26, 2017bills COBRA early Finance Insurance pay retirement unemployed withdrawal

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Im unemployed. Can I take an early withdrawal from my 401k to pay Cobra insurance bills and taxes?

2 Answers

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You should rollover or direct transfer your 401k to an IRA. You can start taking money out at age 59 1/2 (I believe).

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1st you need to roll the 401(k) into a Rollover IRA then you can take a withdrawal to pay for health insurance. You will pay income taxes on the money but not the 10% penalty.