Using 401k

Been re-reading the guidance and am now wondering if I have to cash out my 401k prior to applying if I am using that along with our cash savings to qualify under category D.

If I do have to cash it out will it mean I have to wait another 6 months to apply?

It seems like if you can show you had the amount in the 401k for 6 months it doesn’t matter if you cash out right before you apply, but I’m not sure if I’m interpreting it correctly.

Kind of freaking out about this because we’ve sold everything and my family is heading to the UK tomorrow. I’m planning to apply in November and can’t face the idea of having to wait another 6 months to apply


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Been re-reading the guidance and am now wondering if I have to cash out my 401k prior to applying if I am using that along with our cash savings to qualify under category D.

Can you access/withdraw it immediately in its current form (with or without penalty)?

If so, you do not need to cash it out.

If you cannot access/withdraw it immediately, then you will need to cash it out.

If I do have to cash it out will it mean I have to wait another 6 months to apply?

It seems like if you can show you had the amount in the 401k for 6 months it doesn’t matter if you cash out right before you apply, but I’m not sure if I’m interpreting it correctly.

That's correct.

As long as you can prove the money has been in the 401K for at least 6 months, you would NOT have to wait another 6 months to apply after cashing out.

Can you access/withdraw it immediately in its current form (with or without penalty)?

If so, you do not need to cash it out.

If you cannot access/withdraw it immediately, then you will need to cash it out.

That's correct.

As long as you can prove the money has been in the 401K for at least 6 months, you would NOT have to wait another 6 months to apply after cashing out.

Oh thank God! I’m fully vested and can withdraw any time - I have a letter from the administrator saying this, plus statements that show the amount. Thank you so much for clarifying - I had a mini panic for a second!


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