I have a disease which is causing severe brain atrophy in my family which comes about at the age of 58 yrs old. My mother ended up in a nursing home before she was 60 and was mentally incapacitated. If I end up with this disease, what happens to the thousands of dollars I contributed to my 403B. Will it be withdrawn with a huge penalty? I am thinking this may not be a good investment for me.
2006-11-20 18:05:09 · 1 answers · asked by happydawg 6 in Business & Finance ➔ Investing
You can begin withdrawing your 403(b) now - you need to have your physicians create a "end of life" scenario, which will show you as being terminally ill. Then you don't have to pay the 10% penalty, although you'll still have to pay taxes on the earnings (not the principal) - it's considered to be a hardship case.
If you're with TIAA-CREF (the biggest 403b there is), you may want to ensure that you don't do a single annuity, or you may end up with very little of that money. There are professionals that deal specifically with the best way to get money out of tiaa-cref, because it takes 10 years to get the TIAA annuity money out (because of the way that it's structured). BTW, it's a great company, I have my own 403(b) money in it.
2006-11-20 18:13:00 · answer #1 · answered by Anonymous · 0⤊ 0⤋