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retirement income

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michelemkd

Junior Member
What is the name of your state? New York

In calculating child support, it is my understanding that a court may, at its discretion, consider income from other sources that may be available---including retirement income or non-producing income assets. (is this correct?)

Can a person be forced to use a possible income-generating pension or retirement plan for purposes of child support?

thanks in advance
 


nextwife

Senior Member
Please clarify. Are you asking if they can be forced to take out retirement plan principal, or are you asking if the monies they recieve monthly as retirement income can be counted toward income for CS?


Certainly, if the parent has few or no income producing years left, it is important for him to be certain he is cautious about any spend down on retirement savings. If the parent is of retirement age, has an application for SS benefits on behalf of the child been made yet?
 
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michelemkd

Junior Member
retirement

Both of us get monthly amounts from a particular retirement income. I use mine ($300) towards living expenses for kids. He channels his into savings. He has 7 or 8 years to go till retirement.

Are current deductions taken into consideration when figuring income & child suport obligations? He has a sizeable chunk taken out of his pay for retirement.



thanks
 

nextwife

Senior Member
Retirement plan earnings are supposed to be left in the sheltered account (such as an IRA or 401k) to grow tax deferred until retirement age is attained. There are significant tax penalties for drawing out retirement earnings before a certain age is achieved. I'm 51 with an 8 year old, her dad is 59, we'd never consider drawing out the retirement earnings prematurely. WE budget and spend on our child based on actual earned income (after our retirement deductions).

Non-mandatory retirement contributions ARE counted toward income figured for CS in most states. Although, those who ONLY have the option of non-mandatory should, IMHO, have the same right to build up retirment savings as those who DO have employer plans that are mandatory. But I take 20% off the top of my income BEFORE I get paid, for retirement, stock purchase plus non-retirement savings, and budget accordingly. I simply live as though I make the 80% that is left.
 

michelemkd

Junior Member
retirement/thanks

Yes, this is a non mandatory retirement. Not talking about IRA's or separate pensions that would incur a penalty to withdraw.

thanks for clarifying
 

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