Hello,

My insurance does not cover WLS. I'm interested in having the Sleeve done and cannot afford any more monthly payments at this time, so I'm looking to take a Medical Hardship Withdrawal from my 401k. I've confirmed with my plan administrator that they allow for this and just turned my paperwork in. Has anyone else done this? How long does it normally take to hear back from them whether you're approved or denied? Please let me know how this process worked for you... Thank you!!

A number of my coworkers have taken out 401K loans and they took around 7-10 days before they got the money. I would think that the turnaround time would vary by 401K administrator.

I used 401k funds. Best decision I ever made so much healthier now. It took about ten days to get the check.

If you setup direct deposit, you can typically have your money in 3 business days. I have fidelity, and it only took 3 days.

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Depends on if you sent in all the necessary paperwork at the first go. Usually takes 2 days for review and if you need to submit anything else that keeps adding in 2 more days. Unless the administrator has specific processing time I'd say you're looking at 5-10days from start to cash in hand. It's a great option for those who's insurance doesn't cover it.

Just keep in mind you will have to owe a bit at tax time. You might want to do it with gross up if you think you'll have some unexpected costs. Also some plans suspend you from contributing to your 401k for six months or set time.

Good luck!

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Great, thanks so much for the info & responses! Does anyone know how often people are denied? I have a letter of necessity from my doctor, so I'm hoping that helps my case, but I'm nervous they'll say no for some reason... just wondering if anyone had issues getting denied when trying a hardship withdrawal...

Just wanted to update.... I was approved for my hardship withdrawal and received my funds within a week of being approved! So excited to become a healthier version of myself!! My surgery is set for 10/4, wish me luck!!

I want to do the same . They told me I could just take out what my insurance won't cover but my surgeon wants to be paid in full before surgery????

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I would ask the surgeon for an estimate that provides the total cost along with the amount that he expects your insurance to cover.

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Good idea ! Thank you !!

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I want to request a hardship withdrawal from Fidelity for WLS that insurance doesn't cover. What can I provide Fidelity up front to be approved since I can't pay up front?

Do you know if you can use this in conjunction with an HSA if you don't have the available funds?

I want to request a hardship withdrawal from Fidelity for WLS that insurance doesn't cover. What can I provide Fidelity up front to be approved since I can't pay up front?

You'll want to inquire what paperwork you'll need to submit. The IRS approved reason you'd likely fall into would be unreimbursed medical expenses so they will likely as you to provide provider bills after your insurance (if any) applies and show what remains as your balance due. Some plans also require you to provide proof that you have exhausted all other forms of money like a bank loan (as in you've been denied for one) and now this is your only option. Most have to follow strict IRS regulations when looking at this as a financial hardship since this money is taxable once out of your retirement account.

Best to cal customer service and ask them exactly what documentation requirements exist and what is required for approval.

Good luck!

Do you know if you can use this in conjunction with an HSA if you don't have the available funds?

They are separate. One is handled through your medical benefits and the hardship is handled through retirement plans. In theory you can reach into both as possible funding options.

Best to check out what documentation and eligibility requirement the 401k plan has and if you'd even qualify. Keep in mind it's a withdrawal and gets taxed as such.

Don't do a hardship withdrawal. Do a loan and pay yourself back with interest.

Last I checked a hardship loan required proof of eviction or something like that.