Taxes on retirement Divorce settlement

[Sw3tflower]

What is the name of your state (only U.S. law)? Calif
In my Divorce Settlement Agreement (not yet signed) I do not understand the retirement tax.
My stbx says the last of our retirement of $6,715 is in a bank retirement account in his name. He liquidated a pension profit sharing plan, spent it, and this is what is left.
He is giving me half. 'In order to equalize the division of the community interest in said account and in consideration of the taxes, which would normally be incurred upon withdrawal, husband shall pay wife $2500. The entire amount remaining in the bank account is awarded to husband'
My husband was 59 1/2 when he liquidated the pension fund. He is now 63 1/2.
Half of the leftover fund is $3357. If that much is taken out, are the taxes really $857? Once out, don't I also have to pay taxes on it as income?
I thought at his age we would not have to pay a penality for early withdrawal.
Does this sound right? Am I, as usual, getting screwed?
Thank you.

 

[LdiJ]

What is the name of your state (only U.S. law)? Calif
In my Divorce Settlement Agreement (not yet signed) I do not understand the retirement tax.
My stbx says the last of our retirement of $6,715 is in a bank retirement account in his name. He liquidated a pension profit sharing plan, spent it, and this is what is left.
He is giving me half. 'In order to equalize the division of the community interest in said account and in consideration of the taxes, which would normally be incurred upon withdrawal, husband shall pay wife $2500. The entire amount remaining in the bank account is awarded to husband'
My husband was 59 1/2 when he liquidated the pension fund. He is now 63 1/2.
Half of the leftover fund is $3357. If that much is taken out, are the taxes really $857? Once out, don't I also have to pay taxes on it as income?
I thought at his age we would not have to pay a penality for early withdrawal.
Does this sound right? Am I, as usual, getting screwed?
Thank you.

If he liquidated the entire pension fund at once, the taxes might very well have been that high. No, you will not be liable for taxes now on any of the money, the taxes would have all been paid when the fund was liquidated.

However if you filed a joint return the year that the fund was liquidated, he has no business trying to recoup the tax from you now. If the remaining money is still IN the retirement account, then its valid to hold you responsible for what the tax would be if withdrawn, but its less likely that the taxes would be that high.

 

[Sw3tflower]

joint

Yes, we filed a joint return the year the entire plan was liquidated. He says the bank account the remaining money is in is a retirement account. Would that make sense to liquidate a pension plan of over $100k and put it in his business account, then 2 months later put what's left, $6710, in a retirement accountant? What am I paying over $800 in taxes for?
The taxes were paid and I think he just has it in a personal account.
I have never been ablt to track down the rest of the money.

 

[LdiJ]

Yes, we filed a joint return the year the entire plan was liquidated. He says the bank account the remaining money is in is a retirement account. Would that make sense to liquidate a pension plan of over $100k and put it in his business account, then 2 months later put what's left, $6710, in a retirement accountant? What am I paying over $800 in taxes for?
The taxes were paid and I think he just has it in a personal account.
I have never been ablt to track down the rest of the money.

No, that really wouldn't make much sense. However, he might not have completely liquidated the original retirement account, and the 6710.00 might be what is left in it.

 

[Ohiogal]

Yes, we filed a joint return the year the entire plan was liquidated. He says the bank account the remaining money is in is a retirement account. Would that make sense to liquidate a pension plan of over $100k and put it in his business account, then 2 months later put what's left, $6710, in a retirement accountant? What am I paying over $800 in taxes for?
The taxes were paid and I think he just has it in a personal account.
I have never been ablt to track down the rest of the money.

Gotcha. You filed jointly. You knew therefore what he was claiming he was earning at the TIME OF THE DIVORCE. You can't rewrite history. Especially when you were all over the board since 2007. I can find many more to show how the story you are attempting to tell today is not the story that actually was written over the years. You can't gripe that you didn't know what he earned when you filed jointly.