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    Barbara8182's Avatar
    Barbara8182 Posts: 1, Reputation: 1
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    #1

    Oct 15, 2006, 02:05 PM
    QDRO and penalties
    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
    sevens_angel's Avatar
    sevens_angel Posts: 1, Reputation: 1
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    #2

    Oct 29, 2006, 07:51 AM
    Going through 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
    jude507's Avatar
    jude507 Posts: 1, Reputation: 1
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    #3

    Nov 5, 2007, 03:10 PM
    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!!
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