401K liquidation Ellie: ??? I am in the middle of a divorce and I'm concerned that my husband is going to want 1/2 of my 401K plan. Of course, I hope it doesn't happen and will not give it over unless ordered by a judge. However, my question is this...If a judge forces me to give him 1/2 of my 401K in the settlement, how do the funds get dispensed? In a lump sum, I come up with the cash, etc.? If I am actually forced to liquidate the 401K plan, how are the taxes paid? I am wondering if the taxes just come off the top.
Any help would be most appreciated.
Thanks ahead of time,
Ellie :)
Re: 401K liquidation tulay: Ellie,
I'm dealing with the same sort of thing. While I don't know the answer to your question, my lawyer told me that you do have to hire someone to help you wade through the splitting of the 401K. If you can swing just giving him his cut in cash you would probably be better off (if it comes to that).
I did have worked in to my divorce agreement that my hubby will have to pay whatever fees are involved in having the 401k's split (as in the hiring of the person to split them and what not).
Tulay
