Can my 401k be included as potential income?

401k as well as 403b’s and TSP’s can be included through a system called asset depletion. The rule is you cannot be currently drawing income from any of these programs for them to be considered for asset depletion. For example, someone who is already retired and receiving a monthly payout, which is then already considered income, cannot further deplete the assets mentioned above.

If no income is being drawn, a person can borrow without penalty from most retirement accounts, but it varies from carrier to carrier and needs to be reviewed before it can be done. Also, before making that decision, you should review that concept with your strategist.