Confused in NE
Junior Member
What is the name of your state? Nebraska
I have what I hope is a simple question.
My girlfriend has been separated for over 2 years. She has been divorced since April 07. In the divorce decree she is being given 39K for marital assets her EX is keeping. Those assets include 2 vehicles, a boat, the house, and half of his 401K. Now after fighting for the last 4 months there has finally been an account opened in her name with the same plan administrator for his 401K. She is going to be taxed on this money. She understands that.
1. Why is it that the plan administrator is going to charge her an early withdrawl penalty to cash out this account?
2. Why does she have to pay the 10% tax because she is under 59 ½?
Keeping the money in the 401K is not an option at this point. She needs the cash to pay off bills so she can survive.
Any help would be great!! The lawyer bills are already way too high because of how long he has drawn this out!!!
I have what I hope is a simple question.
My girlfriend has been separated for over 2 years. She has been divorced since April 07. In the divorce decree she is being given 39K for marital assets her EX is keeping. Those assets include 2 vehicles, a boat, the house, and half of his 401K. Now after fighting for the last 4 months there has finally been an account opened in her name with the same plan administrator for his 401K. She is going to be taxed on this money. She understands that.
1. Why is it that the plan administrator is going to charge her an early withdrawl penalty to cash out this account?
2. Why does she have to pay the 10% tax because she is under 59 ½?
Keeping the money in the 401K is not an option at this point. She needs the cash to pay off bills so she can survive.
Any help would be great!! The lawyer bills are already way too high because of how long he has drawn this out!!!