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    meloniepaige67's Avatar
    meloniepaige67 Posts: 1, Reputation: 1
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    Mar 31, 2010, 12:18 PM
    401k cash out questions
    Is there a penalty for cashing out a 401k for college that I just got through QDRO
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    Mar 31, 2010, 02:40 PM

    If you receive the distribution from your ex's 401(k) as the "alternate payee" through a qualified domestic relations order (QDRO) there is no 10% early withdrawal penalty if you decide to take it as a cash distribution. But you will have to pay income tax on it. An alternative is to put the distribution into your own retirement plan (such as an IRA) so it can continue to grow tax-deferred.

    Here's an article you may find helpful: 401(k) and Divorce
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