401k

[mpfups]

What is the name of your state? MD

Im seperated & soon to be divorced in August..My question is my ex is entitled to half my 401K....It is supposed to be paid to her by the end of next month by our consent order...However my job wont let me take the money out....So what can or will happen if i dont come up with the $$ myself to pay her by the due date...

 

[nextwife]

Whether your ex is or is not entitled to half your 401K is a matter of whatever the circumstances are and what agreement is reached or ordered. For example, over half my 401K was already there when I married and is further protected by my prenup. so if I were to divorce, at least the shares I owned prior to marriage would be 100% mine. Likely a division of what accumulated after would be something he'd be entitled to. If you had holdings prior to marriage, you may want to see if you can exempt those.

Check with your company and your attorney, to see if you can retitle the portion of the account that she is entitled to into her name. Is there a life policy you can borrow against to pay her off, then pay yourself back?

 

[kidoday]

I just went through this with a 401K. Your attorney needs to prepare a QDRO. This is what IAAL told me about the QDRO that was originally written up for my case.

withdrawals before he reaches age 59 1/2 will incur a 10% penalty (in addition to being taxed as ordinary income). As such, it would be "fundamentally unfair" to "force" him to shoulder that extra financial burden, and it would normally be considered an abuse of discretion to order a distribution of the retirement plan fund which are not yet eligible for withdrawal.

She may be entitled to half of your 401K, but in a QDRO it will state that an alternate payee needs to be established. So in essence she gets half of your 401K, but is payable depending on your administration plan.

Hope this helps.