My husband wants a divorce. He will need to QDRO part of his 401K to me to buy me out of our house. I will need that money to get my own place. Who has to pay the early withdrawal penalties; him or me? He says there is no penalty involved for either side. Is this true?

Barbara

Going thru this myself, as long as there is a QDRO which is a judgement from the courts there is no penalty as long as the funds are being put into another retirement vehicle. If he is taking it out as a hardship loan there is no penalty either but he will have to pay it back with interest. If you are entitled to 1/2 of his retirement you need to put your half into a retirement vehicle to not have pentalties as well. If either of you take a cash out option there is a 10% penalty plus taxes

Don't sign ANYTHING without an attorney!! Make him get a loanof his own to buy you out!! That is part of YOUR retirement, too--do not GIVE it to him to pay you--that is like you paying yourself!!!