401k ?

[mindy1204]

What is the name of your state? FL

My ex and I have finally agreed to divorce. He has ageered to pay me $20,000 though I would win alot more if I asked for it. Anyway, he was going to try to take it out of his 401K but his HR person says he cant pull it out for divorce without the penlty and he has to pay it back within 16 mths with interest plus 2%. Does this seem right?

Thanks
Mindy

 

[nextwife]

Is the $20,000 your share of his retirement? If so, I believe it can be rolled over into your retirement without penalty.

 

[seniorjudge]

What is the name of your state? FL

My ex and I have finally agreed to divorce. He has ageered to pay me $20,000 though I would win alot more if I asked for it. Anyway, he was going to try to take it out of his 401K but his HR person says he cant pull it out for divorce without the penlty and he has to pay it back within 16 mths with interest plus 2%. Does this seem right?

Thanks
Mindy

double post

Keep all your divorce questions in your original post:

https://forum.freeadvice.com/showthread.php?t=363955

 

[mindy1204]

I did post my questions in two different forums because it was 2 different issues IE: children and general divorce ?

Sorry if i broke the rules..

It is a settlement not really half and I plan on using the money to eventually purchase a home and planned on getting a CD with it.

 

[nextwife]

I did post my questions in two different forums because it was 2 different issues IE: children and general divorce ?

Sorry if i broke the rules..

It is a settlement not really half and I plan on using the money to eventually purchase a home and planned on getting a CD with it.

Your plans for it are not the issue - IS the money, even partially, YOUR share of retirement monies from the marriage? Is he getting part of your retirement money? Whatever is your marital share of retirement funds should be rolled over to you - not withdrawn by him. And his share of your retirement should NOT be withdrawn by you- it should be rolled into a 401K or IRA for him.

 

[Bali Hai]

I did post my questions in two different forums because it was 2 different issues IE: children and general divorce ?

Sorry if i broke the rules..

It is a settlement not really half and I plan on using the money to eventually purchase a home and planned on getting a CD with it.

Retirement money is for retirement. Are you retired??

Split out the 401k money into a separate account in your name and then get to work to buy a house with your earnings.

 

[mindy1204]

Well I am not sure if I am going to post any more questions. You guys are a little mean. I dont care where he gets the money, I am asking for $20,000 and I will walk away. I am legally entitle to about $75,000. I am being more than fair.

I do work everyday since I was 16... I have worked a full time job while going to college at the same time and raising 2 kids pretty much on my own. But as most people who live pay check to pay check know, it is tough to save for a home and pay all the bills with 2 small children.

I was just asking to help him avoid the penalties...

Thanks for the help.

 

[Bali Hai]

Well I am not sure if I am going to post any more questions. You guys are a little mean. I dont care where he gets the money, I am asking for $20,000 and I will walk away. I am legally entitle to about $75,000. I am being more than fair.

So YOU say.

I do work everyday since I was 16... I have worked a full time job while going to college at the same time and raising 2 kids pretty much on my own. But as most people who live pay check to pay check know, it is tough to save for a home and pay all the bills with 2 small children.

I was just asking to help him avoid the penalties...

That isn't going to happen.

Thanks for the help.

Most if not all 401k accounts do not allow for early withdrawls except in cases of extreme hardship.

He would be much better off taking a loan against the account (if the account administrator even would allow that to pay you off).