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QDRO (transfer of 401k funds

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bon4912

Junior Member
What is the name of your state? Georgia


Help! Please! Urgent! Need quick answers for money woes.

In the divorce settlement a QDRO says that I will receive a percentage of the amount accumulated in the 401k account, if I use some of this money to pay off my debts will it be penalized for early withdrawal? In other words is early withdrawal applicable to funds transferred to me or only to funds my ex withdraws and doesn't pay back?
 


Bali Hai

Senior Member
bon4912 said:
What is the name of your state? Georgia


Help! Please! Urgent! Need quick answers for money woes.

In the divorce settlement a QDRO says that I will receive a percentage of the amount accumulated in the 401k account, if I use some of this money to pay off my debts will it be penalized for early withdrawal? In other words is early withdrawal applicable to funds transferred to me or only to funds my ex withdraws and doesn't pay back?

Why would your ex withdraw funds to pay off debt that is your responsibility?

The account administrator will split the account per the QDRO.

You will have your own account subject to IRS and the plan administration rules.

You will withdraw the funds from your account when it's split if you wish. Yes there will be a penality tax (if you're age is less than 591/2) as well as income tax assesed on your withdrawl.
 
Last edited:

Ohiogal

Queen Bee
Bali Hai said:
Why would your ex withdraw funds to pay off debt that is your responsibility?

The account administrator will split the account per the QDRO.

You will have your own account subject to IRS and the plan administration rules.

You will withdraw the funds from your account when it's split if you wish. Yes there will be a penality tax (if you're age is less than 591/2) as well as income tax assesed on your withdrawl.
Less than 295.5? I think everyone currently around would get a penalty then. :D :p
 

Bali Hai

Senior Member
Ohiogal said:
Less than 295.5? I think everyone currently around would get a penalty then. :D :p
I guess I should have spelled it out: Age Fifty-nine and one half.

Where did you get your number?
 

LdiJ

Senior Member
Bali Hai said:
I guess I should have spelled it out: Age Fifty-nine and one half.

Where did you get your number?
591/2 = 591 divided by 2. If you had written it 59 1/2 it wouldn't have been so funny.
 

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