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Financing IF Treatments

Clynn82auClynn82au member
in Trouble TTC

Ladies,

I'm sure most of you have looked into all of your options, especially if you're 100% OOP like us, but I wanted to throw this out there in case someone had overlooked this option.

Many 401(k) plans allow the participant to borrow against the plan without having to pay the 10% early withdrawal fee as long as the reason is considered a "medical hardship".  Many plans these days are writing the contracts to include fertility treatments (IUI, IVF) under this term.  You will have to pay the plan back, which is essentially yourself back, but you won't have to pay any interest.  In my opinion, I'd rather take out a loan against myself where I won't have to pay any interest or hurt my credit in any way.  You will have to pay taxes on the money you take out (like you earned it from your job) but you should also be taking a significant medical expense deduction on your tax return which should come close to canceling out this tax.

A negative to this route is that you will not be earning anything on the money you'll be taking out, like you would be if it was still sitting in the account.  But if you can pay back the plan quickly, it won't hurt you much in the long run. Obviously if you have cash laying around and can avoid this, that's the way to go.  We are extremely lucky and my parents have offered to front us the money (we'll pay them back when we can) but until we knew that, this was the way we were planning on paying for everything. 

Anyway, if this is a vehicle you think you may be able to use, contact your plan and at least ask some questions. 

 

Me-31/DH-32, TTC since Aug 2011, HSG/Blood work all normal 3 SAs - results all over the place. DX Unexplained 
3 failed IUIs, IVF #1: 12R/6M/6F, transferred 1 5d blast, no frosties, bfn.   IVF #2:  12R/6M/5F, transferred 1 5dt, 2 frosties, bfn.    Yale EFT test done, mild inflamation - maybe endometrisis?   FET #1: transferred 2 6d blasts, BFP!!!  Beta #1: 606 e2:303, P: 47   Beta #2: 1,817    Beta #3: 8,625




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Re: Financing IF Treatments

  • katib77katib77 member
    You've always been able to get a loan against your 401K (to a certain limit)  without the 10% tax penalty.  You incur the tax penalty only when it's not a loan but you full out take the money.  And it doesn't need to be for medical hardship

    TTC since July 2009. Dx MFI & LPD. 
    IUI#1&2&3 (2011 & 2012) BFN
    IUI#4 1/23/13 on 75iu x9 Follistim = BFP then chem preg m/c (Feb 2013)
    IUI#5 BFN (April 2013)
    IVF w/ICSI Oct. 2, 2012 - 13R, 11M, 7F, 1 frozen blast 4BB grade - - - FET Nov 15, 2013
    BFP! Beta 1:104 @ 10dp6dt, Beta 2:178 @ 12dp6dt,  beta 3:366 @ 14dp6dt
    Saw heartbeat twice before missed M/C at 8w3d on 12/27/13, missing my little angel boy
    JUNE 2014 IVF#2;  5R, 2M, 1F Three day transfer 6/7.  Beta 6/18 - BFN
    Child Free Now?
     S/PAIFW , S/PALW

    My Blog

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  • Clynn82auClynn82au member

    imagekatib77:
    You've always been able to get a loan against your 401K (to a certain limit)  without the 10% tax penalty. &nbsp
    Me-31/DH-32, TTC since Aug 2011, HSG/Blood work all normal 3 SAs - results all over the place. DX Unexplained 
    3 failed IUIs, IVF #1: 12R/6M/6F, transferred 1 5d blast, no frosties, bfn.   IVF #2:  12R/6M/5F, transferred 1 5dt, 2 frosties, bfn.    Yale EFT test done, mild inflamation - maybe endometrisis?   FET #1: transferred 2 6d blasts, BFP!!!  Beta #1: 606 e2:303, P: 47   Beta #2: 1,817    Beta #3: 8,625




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