As a part of my divorce I was awarded a certain amount from my ex husband's Roth IRA. The account is over 10 years old. Funds were originally transferred to the account from a 401K (business change).
I am reading conflicting information on the tax implications.
I have read that a "transfer due to divorce incident" would mean that the funds would be treated as if they were already mine.
I have read that if I were to request withdrawal instead of transferring it to my own account -- I could do so without penalties and without taxes because they were already paid on the funds.
I have read that I would be able to withdraw without penalty but would face heavy taxes.
I am so confused. I need clear relevant information before I make this decision.
I need to use a portion of the money to finish construction on my home.
I was a victim of Domestic Violence which resulted in a felony charge against my ex.
If Fidelity puts a portion into my account and I take cash withdrawal for the other portion, will there be taxes? If so what taxes?
We are both under 59.5. And its my understanding the funds were already taxed when rolled over to roth ira.
I need to know which information is correct.
Thank you
