Ask Experts Questions for FREE Help !
Ask
    iamthecurious1's Avatar
    iamthecurious1 Posts: 8, Reputation: 3
    New Member
    		  
    #1

    Jun 28, 2009, 12:24 PM
    1/2 of 401K withdraw other 1/2 into IRA
    My former spouse has offered to give 1/2 of his 401K to me, only 7,500, because he has run into major financial issues and cannot pay his ordered child support, my concern is that he is transferring the other 1/2 into an IRA, so how much will I have to pay in penalties taxes etc on the 7,500? Will I also be paying (without my knowledge) taxes or transfer fees on the other half that he is moving into an IRA? Any knowledge or input on this would be greatly appreciated! I'm new, hope I've asked this in the correct location :)
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #2

    Jun 28, 2009, 12:44 PM

    Well it depends on how the agreement is worded, but you shouldn't have to pay anything.

    Its his decision to cash out the 401(k). Therefore the income will be reported on a 1099 in his name only. He will be responsible for taxes and penalities on the full amount. Whatever he pays you goes towards his arrears in child support.
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Withdraw 401k over age 55 [ 1 Answers ]

I am over age 55 and have a 401k with about $200,000 that I need to access due to unemployment of > 4 months. We bought a house 5 months ago. Based on current economy, there are very few jobs in my occupation in this area at this time. Can you withdraw 50% of a 401k? How can I access about 1/2...

401k early withdraw [ 2 Answers ]

Hello does anyone know what the penelty would be on $3,100 taking out of a 401k early? What would be the % taken out? Thank you, Robert

Withdraw 401K for home [ 4 Answers ]

How do I go about cashing in my 401k to purchase my first home.

Withdraw 401K [ 2 Answers ]

If I quit my job, can I close my 401k and take the money and invest it myself? I have 71000 in the account and I want to start my own business, but I would like to use the 401k to pay off my house and other debts.

Withdraw 401k [ 1 Answers ]

I am getting ready to leave my employment with UPS and would like to withdraw all of my 401k to get all current bills paid off and start over. I am moving to another state

View more questions Search