I applied for disability two weeks ago.

I was told that I don't qualify if there is over $8,000 in my 401k.

I have $10,000 (roughly) in my 401k right now, and I'm not working at the moment so I'm not contributing to it.

My confusion is that, why does this matter?

Even if I took it all out (and paid a penalty) it would last, I don't know, two months with all of my medical debt that's in collections, the current medical bills I'm going to be receiving (and we don't have insurance yet), so, pretty much, all gone.

?!

Does anyone know? I'm failing to understand this. And I tried calling disability woman back, but for whatever reason their office closes at noon on wed.