Can you 401K be taken for unpaid medical bills?

In general, a 401(k) account cannot be taken to satisfy unpaid medical bills. This is because Section 401(a) of the Internal Revenue Code states that a 401(k) plan must be "primarily for the purpose of providing benefits for the participants and their beneficiaries on retirement, disability, death or other similar events." Unpaid medical bills are not considered to be a qualifying event under this section.

A 401(k) account may, however, be taken to satisfy other debts that you owe, such as credit card debt, student loans, or delinquent taxes. This is because these debts are considered to be "unsecured." An unsecured debt is a debt that is not backed by collateral, such as a house or a car. Because 401(k) accounts are considered to be unsecured assets, they can be seized by creditors to satisfy debts.

However, there are some exceptions to this rule. For example, if you are a victim of identity theft, you may be able to protect your 401(k) account from being seized. Additionally, some states have laws that protect 401(k) accounts from creditors.

If you are concerned about your 401(k) account being taken to satisfy unpaid medical bills, you should speak to an attorney.