Borrowing from your 401(k) during a lawsuit can trigger taxes, penalties, and decades of lost growth. Pre-settlement funding leaves retirement alone.
401(k) loans and early withdrawals can trigger immediate taxation, a 10% early withdrawal penalty if you're under 59½, and the loss of decades of compound investment growth.
If you leave your job (voluntarily or otherwise) while a 401(k) loan is outstanding, the balance typically becomes due in full within a short window or is treated as a taxable distribution.
Pre-settlement funding has none of those consequences. Non-recourse, no taxes, no penalties, no impact on retirement assets.
For injury claimants, raiding the 401(k) is almost always the wrong call. The long-term cost dwarfs any short-term benefit.
Pre-settlement funding solves the immediate cash need without putting your retirement at risk.
Call (800) 297-3834 or apply online for a comparison to your specific situation.