Hardship withdrawal -- Definition of medical expense?

[Guest DebM]

We have the safe harbor rules for withdrawals in our 401(k). I'm looking for an definition of "medical expenses" -- what qualfies? :confused:

We have an employee that's looking to take a withdrawal for cosmetic surgery, and while I feel that probably doesn't qualify, I'd like to be able to back it up.

[Guest Denise Serra]

It was always my understanding that medical expenses were those items covered under IRC 213(d). As such, under 213(d)(9)(A), which speaks specifically about cosmetic surgery, it outlines that "medical care" does not include cosmetic surgery or other similar procedures, UNLESS the surgery or procedure is necessary to ameliorate a deformity arising from, or directly related to, a congenital abnormality, a personal injury resulting from an accident or trauma, or disfiguring disease."

213(d)(9)(B) defines "cosmetic surgery" to mean "any procedure which is directed at improving the patient's appearance and does not meaningfully promote the proper function of the body or prevent or treat illness or disease."

You might want to check the Regs. to see if they have any specific examples.unless

[Guest DebM]

Thanks for your help -- I found the paragraph that specifically excludes cosmetic surgery.