In December 2004, my wife was diagnosed with an occult breast cancer and has been unable to work due to treatments and surgeries. She has had a very difficult recovery ( she became septic after her radiation treatments and her surigical site had to be reopened and 10 days of IV antibiotics, she also has an major emotional crisis requiring hospitialization) and will have reconstruction surgery in May of 2006. She was not able to work during chemo, radiation thearpy and the multiple surgeries and there is a question if she'll be able to return to her job as a nurse.
I probably should have reduced my 401K contributions this year to help offset the loss of income due to her health. But, I didn't.
In addition to my wife health, we also have a condo in Port Charlotte, Fl that was heavily damaged by last year's storms (mainly Charley and Frances) and deemed unihabitable by the assessment office.
I need to withdraw $10,000, due to repairs to the condo and loss of income due to my wife's health. My thoughts are;
1. Withdraw the money from our IRA's -- I initially thought I could claim a hardship due to wife's illness, but in reading the IRS publication -- it seems she needs to be permantely disabled -- which at this time, I'm not sure of -- a lot will depend on her future surgeries, treatment and outcome. Recently, there was a ruling allowing Katrina residents the ability to withdraw from retirement accounts without incurring a penalty. Does anyone know if such a provision was provided for the Florida Hurricanes, Charley and Frances.
2. Tapped my employer sponsored 401K by taking out a loan against my account.
3. I'm not sure of other options.
Anyone, been there, done that? I appreciate any recommendations.
I was hoping to retire within two years, but with my wife's health, I'll probably need to stay in the workforce until 2009. We are both 51. I'd like to retire tomorrow, not knowing what tomorrow might bring.
Thanks!!!
dwk
I probably should have reduced my 401K contributions this year to help offset the loss of income due to her health. But, I didn't.
In addition to my wife health, we also have a condo in Port Charlotte, Fl that was heavily damaged by last year's storms (mainly Charley and Frances) and deemed unihabitable by the assessment office.
I need to withdraw $10,000, due to repairs to the condo and loss of income due to my wife's health. My thoughts are;
1. Withdraw the money from our IRA's -- I initially thought I could claim a hardship due to wife's illness, but in reading the IRS publication -- it seems she needs to be permantely disabled -- which at this time, I'm not sure of -- a lot will depend on her future surgeries, treatment and outcome. Recently, there was a ruling allowing Katrina residents the ability to withdraw from retirement accounts without incurring a penalty. Does anyone know if such a provision was provided for the Florida Hurricanes, Charley and Frances.
2. Tapped my employer sponsored 401K by taking out a loan against my account.
3. I'm not sure of other options.
Anyone, been there, done that? I appreciate any recommendations.
I was hoping to retire within two years, but with my wife's health, I'll probably need to stay in the workforce until 2009. We are both 51. I'd like to retire tomorrow, not knowing what tomorrow might bring.
Thanks!!!
dwk