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tpquiambao
Apr 4, 2007, 06:14 AM
After divorce I was granted through Qualified Domestics Relations Order a portion of my ex husband's 401K. They sent me a lump sum amount minus taxes for Federal and State of Maryland. What I need to know is, what is the total that I actually owe to federal and state of Maryland for taxes and penalties?

ScottGem
Apr 4, 2007, 06:17 AM
We can't tell you that. A 401K distribution is added to your taxable income from the year just like interest on savings accounts or other non salary income. You then need to use that total to determine your total tax liability. From there you subtract any amounts whithheld from your income.

You will also need to pay a 10% penalty on the distribution.

marksnoopy
Oct 22, 2007, 07:10 AM
After divorce I was granted through Qualified Domestics Relations Order a portion of my ex husband's 401K. They sent me a lump sum amount minus taxes for Federal and State of Maryland. What I need to know is, what is the total that I actually owe to federal and state of maryland for taxes and penalties?
You may want to verify that you owe a 10% penalty.
Look at the information below.
I found this info on the internet:

Exceptions for Early Distributions from a Qualified Retirement Plan such as a 401(k) or 403(b) plan: (don't have to pay 10% penalty)

Distributions upon the death or disability of the plan participant.
You were age 55 or over and you retired or left your job.
You received the distribution as part of "substantially equal payments" over your lifetime.
You paid for medical expenses exceeding 7.5% of your adjusted gross income.**
The distributions were required by a divorce decree or separation agreement ("qualified domestic relations court order")