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dlke1234-
New Member

My divorce was final 01/11/1016 it was after this that i got my portion of the 401 k.. i was told that i would not have to pay a penalty on the money.. is this true?

I took some of the money to buy a car, pay off credit card debt, to grt dental work done and to have some money for living expenses while i got much needed therapy

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MinhT
Expert Alumni

My divorce was final 01/11/1016 it was after this that i got my portion of the 401 k.. i was told that i would not have to pay a penalty on the money.. is this true?

If you received your portion of the 401(k) in a divorce settlement with a Qualified Domestic Relations Order (QDRO), then your withdrawals will not incur the early withdrawal penalty of 10%. However, the withdrawals will be taxed as ordinary income.




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MinhT
Expert Alumni

My divorce was final 01/11/1016 it was after this that i got my portion of the 401 k.. i was told that i would not have to pay a penalty on the money.. is this true?

If you received your portion of the 401(k) in a divorce settlement with a Qualified Domestic Relations Order (QDRO), then your withdrawals will not incur the early withdrawal penalty of 10%. However, the withdrawals will be taxed as ordinary income.




**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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