@mmclean wrote:
@ReneeM7122 - the exception does apply in the case of a QDRO. As long as it is allowed under the terms of the plan (which I confirmed it does for a Fidelity 401k), then the 10% penalty will NOT be assessed. I don't think that point is up for debate.
What is up for debate is whether the newly assigned 401k QDRO account can be drawn from with multiple distributions subsequent to this initial, 10% penalty-free distribution.
See IRS article:
https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-qdro-qualified-dome...
"A QDRO may not award an amount or form of benefit that is not available under the plan."
Contact then plan administrator to see if that is allowed under the terms of the plan.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
