Filing taxes after divorce and receiving 401K money

[sl1972]

I will be receiving half of my husband's 401K due to divorce which will be final in July 2019.  When I file taxes for 2019, will whatever amount I actually withdraw (instead of rolling it over) be considered taxable income?

[Opus 17 · Accepted solution]

Yes.

Although division of assets is not normally taxable in a divorce, money in a qualified plan is always taxable when it is withdrawn, because it was never taxed when it was contributed/deposited.  Any amount you don't roll over will be taxable income to you.

[Anonymous]

if withdrawn before you are 59 1/2 there is a 10% penalty. but there are qualifying exceptions.

 https://wellkeptwallet.com/401k-penalty-for-early-withdrawal/

[Opus 17]

If the distribution is pursuant to a Qualified Domestic Relations Order (QDRO), there is no 10% penalty for early withdrawal on the part not rolled over into another qualified plan, although there still is regular income tax.