distribution of 401K following divorce

#5 11-04-2003, 12:31 PM

You really need to evaluate your entire budget. The 401k money should only
be tapped to keep you from being kicked to the curb. The earlier post is
about your current condition. If you are tapping the 401k money to pay the
cable bill, credit cards and other extras. Then you need to redo your
personal budget and asses your liabilities and assets and find other sources
than your retirement because that money will be expensive.

"sugaree" <sugareeNC[at]charter.net> wrote in message
news:vqf74cg93aue25[at]corp.supernews.com...
- quote -

> i am 49. i need to cash it out for the money. thanks
> "BMS" <mcfared[at]comcast.net> wrote in message
> news:MnFpb.101646$e01.348005[at]attbi_s02...
> > How old are you? You could be eligible for a 72t withdrawal.
> > > You can still take the 401k and roll it into an IRA, but is that all you
> > have for savings?
> > > > "sugaree" <sugareeNC[at]charter.net> wrote in message
> > news:vqe57vi47bmp9c[at]corp.supernews.com...
> > > I appreciate your reply but am not exactly sure what you mean or how
> this
> > > relates to my question. Or perhaps I am confusing you. We have
settled
> on
> > > all other issues (house, cars, kids, etc)but since we had a very
> amicable
> > > divorce, and I hadn't needed the funds until now, I had simply
neglected
> > to
> > > follow up on the detail of *taking charge* of the money and rolling it
> > over
> > > into an account of my own. Is this info of any help now? I guess
> that
> > I
> > > was thinking that there mite be some tax advantage with the lawyers
> plan.
> > > Thanks again.
> > > > > > > "HW "Skip" Weldon" <skip5700removethis[at]hotmail.com> wrote in message
> > > news:6hfdqv8vr9a4b8513rf1bnm33qifp6gl7a[at]4ax.com...
> > > > On Mon, 3 Nov 2003 13:55:46 CST, "sugaree" <sugareeNC[at]charter.net> > > > wrote:
> > > > > > > > I was recently divorced and included in the settlement was a
portion
> of
> > > our
> > > > > 401K plan. Unfortunately, I have now lost my job and need to take
> my
> > > > > distribution and use it for bills, mortgage, etc. I never had the
> > chance
> > > to
> > > > > roll it over into my own account, and was advised (by his lawyer)
to
> > > first
> > > > > roll it over and then cash it out. I can't really see the sense
in
> > > this,
> > > > > since i need the money right away. Can anyone help with some sound
> > > advice??
> > > > > Thank you in advance...........
> > > > > > > > We can't answer this without more info - list of assets and
> > > > liabilities, etc.
> > > > > > > > > > -HW "Skip" Weldon
> > > > Columbia, SC
> > > > > > >

#4 11-04-2003, 11:54 AM

i am 49. i need to cash it out for the money. thanks

"BMS" <mcfared[at]comcast.net> wrote in message
news:MnFpb.101646$e01.348005[at]attbi_s02...
- quote -

> How old are you? You could be eligible for a 72t withdrawal.
> You can still take the 401k and roll it into an IRA, but is that all you
> have for savings?
> "sugaree" <sugareeNC[at]charter.net> wrote in message
> news:vqe57vi47bmp9c[at]corp.supernews.com...
> > I appreciate your reply but am not exactly sure what you mean or how
this
> > relates to my question. Or perhaps I am confusing you. We have settled
on
> > all other issues (house, cars, kids, etc)but since we had a very
amicable
> > divorce, and I hadn't needed the funds until now, I had simply neglected
> to
> > follow up on the detail of *taking charge* of the money and rolling it
> over
> > into an account of my own. Is this info of any help now? I guess
that
> I
> > was thinking that there mite be some tax advantage with the lawyers
plan.
> > Thanks again.
> > > > "HW "Skip" Weldon" <skip5700removethis[at]hotmail.com> wrote in message
> > news:6hfdqv8vr9a4b8513rf1bnm33qifp6gl7a[at]4ax.com...
> > > On Mon, 3 Nov 2003 13:55:46 CST, "sugaree" <sugareeNC[at]charter.net> > > wrote:
> > > > > > I was recently divorced and included in the settlement was a portion
of
> > our
> > > > 401K plan. Unfortunately, I have now lost my job and need to take
my
> > > > distribution and use it for bills, mortgage, etc. I never had the
> chance
> > to
> > > > roll it over into my own account, and was advised (by his lawyer) to
> > first
> > > > roll it over and then cash it out. I can't really see the sense in
> > this,
> > > > since i need the money right away. Can anyone help with some sound
> > advice??
> > > > Thank you in advance...........
> > > > > > We can't answer this without more info - list of assets and
> > > liabilities, etc.
> > > > > > > -HW "Skip" Weldon
> > > Columbia, SC
> > >

#3 11-04-2003, 11:54 AM

"sugaree" <sugareeNC[at]charter.net> wrote in message news:<vqe57vi47bmp9c[at]corp.supernews.com> ...
- quote -

> I appreciate your reply but am not exactly sure what you mean or how this
> relates to my question. Or perhaps I am confusing you. We have settled on
> all other issues (house, cars, kids, etc)but since we had a very amicable
> divorce, and I hadn't needed the funds until now, I had simply neglected to
> follow up on the detail of *taking charge* of the money and rolling it over
> into an account of my own. Is this info of any help now? I guess that I
> was thinking that there mite be some tax advantage with the lawyers plan.
> Thanks again.

I don't see a tax advantage to the lawyer's advice. However, it may
be the only way to get your money. It is generally impossible to get
money out of a plan while (in this case your husband) is still
employed there. In fact, it will take a court order to do so. It is
likely that the court order in the divorce specifies the money must be
rolled over. This should be done ASAP, regardless of what you end up
doing with the money.

However, you asked for sound advice. Draining your retirement account
to pay month-to-month bills is not typically sound advice, which
prompted the response from Skip. Keep in mind you'll be paying a 10%
penalty off the top plus regular income taxes on the withdrawal.

#2 11-04-2003, 08:59 AM

How old are you? You could be eligible for a 72t withdrawal.

You can still take the 401k and roll it into an IRA, but is that all you
have for savings?

"sugaree" <sugareeNC[at]charter.net> wrote in message
news:vqe57vi47bmp9c[at]corp.supernews.com...
- quote -

> I appreciate your reply but am not exactly sure what you mean or how this
> relates to my question. Or perhaps I am confusing you. We have settled on
> all other issues (house, cars, kids, etc)but since we had a very amicable
> divorce, and I hadn't needed the funds until now, I had simply neglected
to
> follow up on the detail of *taking charge* of the money and rolling it
over
> into an account of my own. Is this info of any help now? I guess that
I
> was thinking that there mite be some tax advantage with the lawyers plan.
> Thanks again.
> "HW "Skip" Weldon" <skip5700removethis[at]hotmail.com> wrote in message
> news:6hfdqv8vr9a4b8513rf1bnm33qifp6gl7a[at]4ax.com...
> > On Mon, 3 Nov 2003 13:55:46 CST, "sugaree" <sugareeNC[at]charter.net> > wrote:
> > > > I was recently divorced and included in the settlement was a portion of
> our
> > > 401K plan. Unfortunately, I have now lost my job and need to take my
> > > distribution and use it for bills, mortgage, etc. I never had the
chance
> to
> > > roll it over into my own account, and was advised (by his lawyer) to
> first
> > > roll it over and then cash it out. I can't really see the sense in
> this,
> > > since i need the money right away. Can anyone help with some sound
> advice??
> > > Thank you in advance...........
> > > > We can't answer this without more info - list of assets and
> > liabilities, etc.
> > > > -HW "Skip" Weldon
> > Columbia, SC

#1 11-04-2003, 02:42 AM

I appreciate your reply but am not exactly sure what you mean or how this
relates to my question. Or perhaps I am confusing you. We have settled on
all other issues (house, cars, kids, etc)but since we had a very amicable
divorce, and I hadn't needed the funds until now, I had simply neglected to
follow up on the detail of *taking charge* of the money and rolling it over
into an account of my own. Is this info of any help now? I guess that I
was thinking that there mite be some tax advantage with the lawyers plan.
Thanks again.

"HW "Skip" Weldon" <skip5700removethis[at]hotmail.com> wrote in message
news:6hfdqv8vr9a4b8513rf1bnm33qifp6gl7a[at]4ax.com...
- quote -

> On Mon, 3 Nov 2003 13:55:46 CST, "sugaree" <sugareeNC[at]charter.net> wrote:
> > I was recently divorced and included in the settlement was a portion of
our
> > 401K plan. Unfortunately, I have now lost my job and need to take my
> > distribution and use it for bills, mortgage, etc. I never had the chance
to
> > roll it over into my own account, and was advised (by his lawyer) to
first
> > roll it over and then cash it out. I can't really see the sense in
this,
> > since i need the money right away. Can anyone help with some sound
advice??
> > Thank you in advance...........
> > We can't answer this without more info - list of assets and
> liabilities, etc.
> -HW "Skip" Weldon
> Columbia, SC

11-03-2003, 07:47 PM

On Mon, 3 Nov 2003 13:55:46 CST, "sugaree" <sugareeNC[at]charter.netwrote:

- quote -

> I was recently divorced and included in the settlement was a portion of our
> 401K plan. Unfortunately, I have now lost my job and need to take my
> distribution and use it for bills, mortgage, etc. I never had the chance to
> roll it over into my own account, and was advised (by his lawyer) to first
> roll it over and then cash it out. I can't really see the sense in this,
> since i need the money right away. Can anyone help with some sound advice??
> Thank you in advance...........
We can't answer this without more info - list of assets and

liabilities, etc.

-HW "Skip" Weldon
Columbia, SC

#-1 11-03-2003, 06:55 PM

I was recently divorced and included in the settlement was a portion of our
401K plan. Unfortunately, I have now lost my job and need to take my
distribution and use it for bills, mortgage, etc. I never had the chance to
roll it over into my own account, and was advised (by his lawyer) to first
roll it over and then cash it out. I can't really see the sense in this,
since i need the money right away. Can anyone help with some sound advice??
Thank you in advance...........

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