My husband just put in for a loan from his 401k. His employer demanded proof of what he plans on doing with this loan. ( In this case he is paying past medical bills). The proof that she requested were copies of these bills. Is this acceptable? I feel this is wrong and an infringment of HIPAA Laws. Am I right?
2007-12-17 11:44:46 · 4 answers · asked by Anonymous in Politics & Government ➔ Law & Ethics
We understand that there are penalities and all that crud. HOWEVER..... the rules are he can only take 50% of his vested balance. my question is "is this a Hipaa infridgment of our privacy?"
2007-12-17 11:51:06 · update #1
what I mean by this is asking for copies of MEDICAL bills.
2007-12-17 11:54:17 · update #2
Oh, man, I sign off on these loans all the time as part of my firm's 401(k) committee, but the question has never come up. To be honest with you, I think we just assume that, from time to time, some of these loans are for purposes other than stated, but we also consider it the employee's money, so...
Dang!!! I don't know!
2007-12-17 11:56:48 · answer #1 · answered by Cappo359 7 · 1⤊ 0⤋
If your 401k has a provision that it can only be withdrawn for certain reasons such as purchasing a home, education, or financial hardship then yes your employer can ask for proof.
You can black out anything you do not want him to see - such as what each item on the bill is but not the cost, and no this is not a HIPPA violation.
2007-12-17 11:54:51 · answer #2 · answered by Susie D 6 · 2⤊ 0⤋
No, 401K can take a loan out to say buy a house, but not just pay bills. There are penalties, and it's a loan that needs to be paid back. Now....does our employer do a match?
2007-12-17 11:48:53 · answer #3 · answered by Anonymous · 1⤊ 1⤋
Yes, they can require it, because there are tax requirements.
Richard
2007-12-17 12:00:21 · answer #4 · answered by rickinnocal 7 · 1⤊ 2⤋