Comments on: How much is taxed when you take money out of your 401k? http://www.secretfinance.com/blog/how-much-is-taxed-when-you-take-money-out-of-your-401k/ Thu, 17 May 2012 20:25:17 +0000 http://wordpress.org/?v=2.7 hourly 1 By: SuzeY http://www.secretfinance.com/blog/how-much-is-taxed-when-you-take-money-out-of-your-401k/comment-page-1/#comment-1179 SuzeY Sun, 01 Mar 2009 23:24:31 +0000 http://www.secretfinance.com/blog/how-much-is-taxed-when-you-take-money-out-of-your-401k/#comment-1179 Before I give advice, I was wondering if you have a QDRO (qualified domestic relations order) in place. If so, you may already have some protection from tax implications on this. Check with your attorney to see if he set up the QDRO. Also, it seems to me that it could be possible to handle this an entirely different way. Since the main idea is to divide your assets in half, couldn't the decree have been set up such that you would retain 100% interest in the 401(k) and she would receive cash? It seems like kind of sloppy planning to have either of you end up with tax implications from this. Some states have certain laws that preclude this sort of thing, but check with your attorney to see if it's too late for the QDRO or dividing the assets differently. Good luck! Before I give advice, I was wondering if you have a QDRO (qualified domestic relations order) in place. If so, you may already have some protection from tax implications on this. Check with your attorney to see if he set up the QDRO. Also, it seems to me that it could be possible to handle this an entirely different way. Since the main idea is to divide your assets in half, couldn’t the decree have been set up such that you would retain 100% interest in the 401(k) and she would receive cash? It seems like kind of sloppy planning to have either of you end up with tax implications from this. Some states have certain laws that preclude this sort of thing, but check with your attorney to see if it’s too late for the QDRO or dividing the assets differently.

Good luck!

]]> By: Ellie http://www.secretfinance.com/blog/how-much-is-taxed-when-you-take-money-out-of-your-401k/comment-page-1/#comment-1178 Ellie Fri, 27 Feb 2009 08:58:03 +0000 http://www.secretfinance.com/blog/how-much-is-taxed-when-you-take-money-out-of-your-401k/#comment-1178 Good news...the $12 K was paid directly to her and she gets own 1099R from pension. Zip taxable to you. All taxable to her when received. Bad news...you contact pension and get money YOURSELF to give her. then you get own 1099R that is taxable to you plus a 10% ($1200.00) penalty if you are under 59 1/2. Zip taxed to her. She and her lawyer are ROTFL at you. Wrong way to do this. Should have called 800-829-1040 for advise BEFOREHAND. Good news…the $12 K was paid directly to her and she gets own 1099R from pension. Zip taxable to you. All taxable to her when received.

Bad news…you contact pension and get money YOURSELF to give her. then you get own 1099R that is taxable to you plus a 10% ($1200.00) penalty if you are under 59 1/2. Zip taxed to her. She and her lawyer are ROTFL at you. Wrong way to do this. Should have called 800-829-1040 for advise BEFOREHAND.

]]> By: mazziatplay http://www.secretfinance.com/blog/how-much-is-taxed-when-you-take-money-out-of-your-401k/comment-page-1/#comment-1177 mazziatplay Wed, 25 Feb 2009 05:20:52 +0000 http://www.secretfinance.com/blog/how-much-is-taxed-when-you-take-money-out-of-your-401k/#comment-1177 You'll be taxed roughly 30%. If you have own a home, you might be better off accessing your equity with a refinance, home equity line or second mortgage rather than taking the tax penalty. You’ll be taxed roughly 30%. If you have own a home, you might be better off accessing your equity with a refinance, home equity line or second mortgage rather than taking the tax penalty.

]]> By: Ravon27 http://www.secretfinance.com/blog/how-much-is-taxed-when-you-take-money-out-of-your-401k/comment-page-1/#comment-1176 Ravon27 Sun, 22 Feb 2009 01:53:58 +0000 http://www.secretfinance.com/blog/how-much-is-taxed-when-you-take-money-out-of-your-401k/#comment-1176 I know someone who took out there 104K early. It was taxed about 40% and penalties for early withdrawal. Buy her out. I think she should have to wait. I would have had to with my husbands. I know someone who took out there 104K early. It was taxed about 40% and penalties for early withdrawal. Buy her out. I think she should have to wait. I would have had to with my husbands.

]]> By: diamondspider http://www.secretfinance.com/blog/how-much-is-taxed-when-you-take-money-out-of-your-401k/comment-page-1/#comment-1175 diamondspider Fri, 20 Feb 2009 03:54:31 +0000 http://www.secretfinance.com/blog/how-much-is-taxed-when-you-take-money-out-of-your-401k/#comment-1175 I have a funny feeling you can't buy her out. Not sure about that, but it seems like the IRS might not like her "gifting" you her part of the 401k without a taxable transaction taking place. That is the first thing I'd check. I have a funny feeling you can’t buy her out. Not sure about that, but it seems like the IRS might not like her “gifting” you her part of the 401k without a taxable transaction taking place.

That is the first thing I’d check.

]]> By: msqtech http://www.secretfinance.com/blog/how-much-is-taxed-when-you-take-money-out-of-your-401k/comment-page-1/#comment-1174 msqtech Wed, 18 Feb 2009 22:07:14 +0000 http://www.secretfinance.com/blog/how-much-is-taxed-when-you-take-money-out-of-your-401k/#comment-1174 taxed at your regular rate for the year and income recei ved taxed at your regular rate for the year and income recei ved

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