I need help with legal words.

[Just lost]

What is the name of your state? PA
When you are awarded $ from a retirement plan, do you have to file it with your income taxes at the end of the year?
If it must be taxed, is there any way I can have my X Ordered to pay those taxes?
Is there a way for me not to be penalized for early withdrawl of X's retirement $? If I want it in one lump sum, now?
Thanks
just lost

 

[stealth2]

Why should your ex be penalized for your decision to withdraw the funds in a lump sum?

 

[annefan1000]

>>When you are awarded $ from a retirement plan, do you have to file it with your income taxes at the end of the year?

--Yes (If it was rolled over into another tax sheltered retirement, you may not pay tax on it, but you must report the transaction)

>>If it must be taxed, is there any way I can have my X Ordered to pay those taxes?

--No. It was considered a monetary settlement to you. Period.

>>Is there a way for me not to be penalized for early withdrawl of X's retirement $? If I want it in one lump sum, now?

--Check with the retirement plan administrator. I don't know of any retirement plans that can be withdrawn tax-free (certain expenses might allow it, check with a CPA)


Thanks
just lost

 

[Just lost]

What if I would roll it over?

What about if I would roll the $ into another retirement fund until retirmment age? Then after retirement upon receiving the $, is the $ still reported as income, therefore taxed?
The reason: X owes me monies as a result of our divorce, only a small % is actually the % due to me from the retirement plan and the rest from our /split,he wants to take out from his plan so he can pay me without getting a loan. So, I would also like to know if he would have to get a loan instead to pay me the remainder $/split, (since it wouldn't all be out of his plan) is the $ still reported as income on my end? Wouldn't I be at least saving myself $, from not having to pay those penalties on that extra $ ?
Any ideas? Hope I explained okay?
Thanks again
just lost

 

[annefan1000]

Re: What if I would roll it over?

What about if I would roll the $ into another retirement fund until retirmment age? Then after retirement upon receiving the $, is the $ still reported as income, therefore taxed?

--Yes, it is taxed upon withdrawl, even at retirement

The reason: X owes me monies as a result of our divorce, only a small % is actually the % due to me from the retirement plan and the rest from our /split,he wants to take out from his plan so he can pay me without getting a loan. So, I would also like to know if he would have to get a loan instead to pay me the remainder $/split, (since it wouldn't all be out of his plan) is the $ still reported as income on my end? Wouldn't I be at least saving myself $, from not having to pay those penalties on that extra $ ?

Any ideas? Hope I explained okay?
Thanks again
just lost

--If the spouse withdraws from the retirement to settle your divorce, then the spouse would be responsible for penalties and fees. The recipient (you) would be responsible for taxes on the income you gain from this transaction, whether it came from a retirement account or as cash through the spouse obtaining a personal loan. Generally, the employer will withhold the federal and state tax, you receive the remainder.

 

[Just lost]

Thank you annefan 1000

Thank you annafan 1000
If you are a lawyer, I wish you were mine. You have explained more to me in 10 minutes than my lawyer has told me since May.
Thanks again!

 

[annefan1000]

You're welcome. No, I am not a lawyer but my husband keeps urging me to become one. I am very intrigued by the law, and I am eager to learn, but when he asks me about going to law school, I respond with "do I have STUPID written on my forehead?"

On a side note, I too, am in Pennsylvania and have learned everything I know about Divorce/Child Custody from personal experience. Too much personal experience.