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

    Jul 13, 2011, 08:23 AM
    QDRO distribution
    I am receiving 50% of my ex husbands 401K and I wanted to pay off my 401k loan with part of the funds then roll over the remaining into my 401K. Can I do this without being penilized for the entire QDRO funds?
    dontknownuthin's Avatar
    dontknownuthin Posts: 2,910, Reputation: 751
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    #2

    Jul 13, 2011, 10:10 AM

    It sounds like you could do this and there would be no penalty from the government as you are moving funds from one 401K to another so aren't technically taking a disbursement, but you would need to talk to the particular fund administrators and find out if they have any charges or penalties. It might be beneficial to run by your tax accountant as well to make sure there's not some weird tax law that might apply.

    The other thing to consider is whether you are entitled to future payouts on the 401(k) (because he's not yet retired) or if you are presently getting payouts. You may not be able to take funds out, depending on how the QDRO is drafted, until the normal distribution begins, so look into that as well with the fund administrators.
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