Skip to main content
Level 4
May 5, 2020
Question

early withdrawal penalty

  • May 5, 2020
  • 2 replies
  • 27 views

If a wife was given a 401k from her husband in a divorce settlement. and she is not 591/2. Does she have to pay an early withdrawal penalty?

This topic has been closed for replies.

2 replies

IRonMaN
Level 15
May 5, 2020

If the attorney did it right, the money is just transferred over into her name without any tax related issues.  If the attorney didn't do it right or the wife got greedy and withdrew the money, she will be subject to a penalty.

Slava Ukraini!
BobKamman
Level 15
May 5, 2020

Start your research with a Google search for QDRO