by marketandpowell on March 10th, 2007

marketandpowell

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Got divorced.he owes me our 401k amount. I will get it, minus early withdrawal. now hw insists that he take out his 33% tax bracket for 2007. I am in the lowest bracket. can he do this?

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Answers. 2 helpful answers below.

  • by Old School on March 10th, 2007

    Old School

    I do not see why you have to pay taxes on the 401k funds if you don't want to.

    You can opt to leave the funds in the 401k in a separate account, or roll them over into an IRA account. Either of these options will shield you from income taxes until you withdraw the money.

    Furthermore, it's not up to your ex-husband how much money is withheld from the 401k, it's up to the IRS.

    My ex-wife and I are in the process of a similar transaction and all she is doing is telling the relevant plan adminstrators where to move the money. She has no involvement in the witholding.

    If you have a divorce lawyer, get him/her on the case. If you don't have a divorce lawyer, you might consider contacting the following organization as a starting point:

    http://www.dwdignity.com/

    Good luck

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  • by notquitered on April 4th, 2008

    notquitered

    If the split of the 401(k) is by court order (QUADRO) then there are no taxes if you roll the money into your own IRA. He will NOT pay penalty for early withdrawal either. Sounds like you should see professional to help you with this. If he is telling you he is paying taxes and early withdrawl heis either fibbing or he does not understand how this works either. GO SEE SOMEONE PROFESSIONAL.

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