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As POA can I use money from my dad's 401k to pay some of his bills?

Asked almost 3 years ago - Denver, CO

My dad suffered a brain injury and will have to be placed into a nursing home. He could be there for a year plus, or less just depends on how well he'll recover. He does not own his own home, but is paying on a car and has some credit card debt. He has a 401k with enough money to pay his car off as well as his credit card debt. As his power of attorney am I able to access his 401k to pay these bills?

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I do have Durable Power of Attorney. My dad will be 60 this coming June.

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Attorney answers (1)

David C. Garner

Reputation Level 15

Answered almost 3 years ago. Employment / Labor Attorney in Gridley, CA.

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You did not specify, but I am assuming you have a durable power of attorney. The other type expires at death or incapacity.

Your durable power of attorney should specify your abilites to act for him. Assuming that in includes the ability to act financially, then you mamake these disbursements.

I would suggest talking with an accountant as distributions from a 401K come with tax consequences. You did not specify how old your dad is. It might also be good to pass this all by an elder law attorney. You might want to look at a special needs trust, especially if his recovery seems doubtful.

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