If you are under age 59 l/2 and are either "disabled" or have a "hardship," you may be able to withdraw your money. The money you take will be counted as ordinary income for tax purposes. You may have to pay tax penalties.

If your Plan allows distributions upon disability, it is advisable to check your Plan's definition of "disability." It may be defined the same as in the law for Social Security Disability Insurance (SSDI), or the definition may be more generous. With respect to hardships, there are not only rules which define a hardship for 401K purposes, there are also rules about continuing to invest in the plan after the hardship distribution.

A plan will define "disability" with a standard such as defined in the Social Security laws or a standard defined in the plan itself. Either way, your doctor's cooperation is critical.

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