any tax penalty when 50% of a 401K is rolled over into a new IRA to an ex-spouse ?

[Tomcat2]

What is the name of your state (only U.S. law)? New York
Hi guys, I wonder if any of you good people out there knows if there are any taxes or penalties when 50% of one 401K is rolled over into a new IRA for an ex-spouse ? -Any tax forms ?

 

[tranquility]

Wow. Um, you would have a 10% penalty for early distribution (If an exception didn't apply.) and the ex-spouse would have a 6% overcontribution (If more than allowed to contribute to the IRA.) excise tax EACH YEAR the overcontribution remains in the account.

If through a QDRO, no penalty.

 

[LdiJ]

What is the name of your state (only U.S. law)? New York
Hi guys, I wonder if any of you good people out there knows if there are any taxes or penalties when 50% of one 401K is rolled over into a new IRA for an ex-spouse ? -Any tax forms ?

As Tranq said, if this division is part of your divorce settlement and done via a QDRO then there are no tax ramifications of any kind.