what is a Quadro Order?

[LdiJ]

Let's stick to the subject, 401k's and divorce!

Now answer this as I have asked you several times before, WHY wouldn't a person be required to pay the penalty on a 401k distribution and the original account holder would as a result of a QDRO? I see that money sitting there with restrictions for years and you are saying the restrictions are lifted for ONE person in a divorce action.

I appreciate your indulgance.

Ok...let me try to explain this better.....

The exception applies to the money that is coming out of the original account DUE TO THE DIVORCE. The rest of the money does not need to come out of the account DUE TO THE DIVORCE.

 

[Bali Hai]

Ok...let me try to explain this better.....

The exception applies to the money that is coming out of the original account DUE TO THE DIVORCE. The rest of the money does not need to come out of the account DUE TO THE DIVORCE.

So you are telling me that one spouse IS able to avoid a tax penalty for receiving a distribution and the other spouse IS NOT, DUE TO THE DIVORCE??

Wouldn't the more appropriate course of action be that the money coming out of the original account be required to be rolled over into a traditional IRA IF there were no other means to keep it invested tax deferred?? And if the person did not roll it over, then pay the penalty? This is done all the time, why is it different due to divorce??

Does this seem more appropriate and fair to you?

 

[LdiJ]

So you are telling me that one spouse IS able to avoid a tax penalty for receiving a distribution and the other spouse IS NOT, DUE TO THE DIVORCE??

Wouldn't the more appropriate course of action be that the money coming out of the original account be required to be rolled over into a traditional IRA IF there were no other means to keep it invested tax deferred?? And if the person did not roll it over, then pay the penalty? This is done all the time, why is it different due to divorce??

Does this seem more appropriate and fair to you?

It doesn't matter what I think is appropriate or fair. What matters is the law. There are lots of things in the tax code that I think are inherently unfair....and lots of things that I think are totally fair, and others think are inherently unfair.

 

[Bali Hai]

It doesn't matter what I think is appropriate or fair. What matters is the law. There are lots of things in the tax code that I think are inherently unfair....and lots of things that I think are totally fair, and others think are inherently unfair.

I asked you about this particular part of the code (401k's and DIVORCE).

Inherently fair? Totally fair? Or inherently unfair?

 

[LdiJ]

I asked you about this particular part of the code (401k's and DIVORCE).

Inherently fair? Totally fair? Or inherently unfair?

I personally think its fair for no penalty to be assessed on funds that are being withdrawn due to divorce, and fair that regular taxes are due on those funds if fully withdrawn.

I don't care if the person holding the original 401k is a man or a woman either

I think that its silly to be stomping around saying that if one person ends up with a penalty free withdrawal, that the other person should be able to withdraw the other percentage of the funds penalty free too.....because the other person should be doing their level best to keep the rest of their 401k intact.

Again, that's my opinion no matter the gender of the person originally holding the 401k.

 

[Bali Hai]

I personally think its fair for no penalty to be assessed on funds that are being withdrawn due to divorce, and fair that regular taxes are due on those funds if fully withdrawn.

Thank you for being up front and honest.

I don't care if the person holding the original 401k is a man or a woman either

We both know it is LIKELY to be a woman....

I think that its silly to be stomping around saying that if one person ends up with a penalty free withdrawal, that the other person should be able to withdraw the other percentage of the funds penalty free too.....

Oh really? My point is that if ONE person gets a penaly free withdrawl, they BOTH DO!!

because the other person should be doing their level best to keep the rest of their 401k intact.

The "other" person being the person who generated the 401k to begin with?? That's the person you are advocating screwing??

Again, that's my opinion no matter the gender of the person originally holding the 401k.

Horsesh!t!!!**************....