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Asked 5/12/2011
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I have been diagnosed with bi-polar and need to withdraw money from my 401K. Do I need a valid drivers license to apply? I have not worked for 9 years due to my illness. I need money for living expenses and the 401K is all that I have left. Someone told me that I have to have a valid drivers License to apply, which I don't have. Will a birth certificate work? |
Answer 1/2 - Submitted 5/12/2011
I will assume that you have a 401(k) plan with a former employer. The answer to your question will depend on whether you are still employed and out on disability or whether you have terminated from your employer at this point.
If you are still an employee, you may be able to withdraw from your 401(k) as a "hardship" withdrawal. This is not allowed in every plan so you will need to ask your employer or your plan record keeper if this is an option for you and what the process is. The normal process is for you to submit some paperwork to your employer. In this case, a driver's license would not normally be needed since your employer knows you.
If you are still an employee, you also may be able to take a loan from your balance. Again, your plan may or may not allow this so you will need to check with your employer or plan record keeper. If you are not receiving a paycheck it is less likely that the loan option will work for you since you must have a way to pay it back and many plans will only allow a new loan if payments are deducted from your paycheck.
If you are terminated, you may be eligible to simply take a distribution. In that case, you will face tax withholding and a 10% penalty when you do your taxes for this year, but you could take the rest as a distribution. Like the other options, you would initiate this process with either your employer or your plan record keeper, depending on how your plan is managed.
Best of luck to you.
Answer 2/2 - Submitted 5/16/2011
You will likely need some form of photo identification (passport or an identity card since you don't have a driver's license). You can obtain an identity card from the DMV http://www.dmv.org/id-cards.php. I'm assuming they need photo identification because they need to make sure they're giving the money to the right person. Identification cards are used in place of driver's license for those that are not old enough to have a license or for those that do not have a license. Your best bet is to call the 401k company and make sure, but I think you'll need to get an id card from the DMV. Best of luck.
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