anyone know the laws regarding WLS using your 401K?

My insurance has an exclusion and I am looking at a revision. Any info would help!

Can I take money out of my 401k plan once it has been contributed?

While 401k plans were developed as a means for saving for retirement, there are a few cases where money can be taken from your plan before you retire. Loans: Some 401k plans allow for a loan to be taken against funds you have contributed to the plan. Each company has its own provisions for loans and they often require that the money can only be taken if there is an extreme hardship, such as medical expenses, prevention of eviction or foreclosure, purchase of a primary residence, funeral expenses, or post-secondary education. To find out whether your plan offers a loan provision, check with your Human Resources Department or check your Summary Plan Description. Hardship Distribution: As the name suggests, some plans allow for a distribution in times of extreme financial hardship, such as those listed above. However, not all plans allow for this, and if this option is used before the age of 59½, a 10% penalty tax will be assessed on the distribution. You will also have to pay applicable income taxes and will not be able to participate in the 401k plan for six months. Check with your Human Resources Department or your Summary Plan Description for more information specific to your plan. Distribution upon termination of employment, death or disability:Upon termination, death or disability, you or your beneficiary will have the option of rolling over your account balance into another qualified plan or IRA (not available to beneficiaries other than your spouse), or taking a cash distribution. If you choose to a cash distribution, 20% of your account balance will be held for income tax purposes, in addition to a 10% penalty tax if you are under the age of 59½ (does not apply to deceased participants). In order to defer taxation on a cash distribution, these funds must be deposited in a qualified retirement plan of IRA within 60 days of the date of distribution

You can avoid the 10% penalty ... anything above the 7.5% cap can be used against the penalty.  EX:  You have $5000 above the 7.5% cap on total medical -- You take $11000 out -- you pay 10% penalty on the  other $6000.   Does that make sense? But, it may push you into a higher tax bracket since it will count as income, not to mention your state tax.  I tell my clients you get about half what you take after the tax man comes...take a loan before a distribution.

I used my 401k for my surgery, and did not have to pay the 10% fee. It was a termination distribution, as I had already left the company. You can talk with someone in HR about hardship distributions and/or loans, and which is a better option for you.

My 401K plan said you can use the money for medical purposes without the penalty, however you do have to pay 10% tax. That is how I am doing it, as I also have a wls exclusion.