@vrzuker wrote:
We agreed to each keep our own 401k so no division. However he believes he could cash out before divorce judgment was made.
As long as you are filing separately, and do not live in a community property state, you have nothing to worry about. It's all his income and his penalties.
If you live in a community property state, see a competent tax professional (not a seasonal storefront operation). When you live in a community property state, you must divide your community income equally even when you file separate returns. The definition of community income varies from state to state. If you are legally separated, your income after the separation might not be "community" income any more, because the marital community might have ended with the separation. Or, his 401(k) might be individual income and not community income because it is an individual account, regardless of the date the marital community ends. Community property states can have tax complications and a professional opinion may be advisable.
Cheers.
