Can I take money out of my 401k after filing for Chapter 13?

I am over 62 years old.

Asked on February 16, 2013 under Bankruptcy Law, New Hampshire

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

Taking money out of your 401k is still considered to be borrowing and so is prohibited without the authorization of your Trustee. Additionally, as an asset you cannot cash in or otherwise dispose of funds in a 401k account, just as you can't sell off any other property without permission from the trustee and for good cause.

Further, even if you are given permission, there may be tax consequences for withdrawing funds out of a 401k. Accordingly,you should speak with a txa professional before doing so.


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