"Absence makes the clarity grow stronger" - cantaccept
Just want to say that neverbeokay's post is SPOT ON!!!
People always think there's a 10% penalty for taking retirement monies that are split in a QDRO. THERE ISN'T!
I rolled over my 401k into a new plan. Had I wanted to take it in cash, they would have only removed normal tax off the top. No penalty. So if your 401k portion is, say 50k, you could take it out, keep 10k, and return the rest to a new 401k. Or do whatever the heck you want to with it.
I DID cash out a small pension. It was about 17k, I think, and I got about 13k after taxes. NO PENALTY. And, because the tax rate is standard (not specific to your income bracket), I was actually REFUNDED another grand when I did my taxes this year.
If you choose not to roll the entire sum over, the plan administrator will have the taxes removed. You don't have to do a thing.
Now I'm wishing I'd kept a bit of the 401k to use as an emergency fund. But since I rolled the entire amount over to a new 401k, I can't touch it until retirement....unless I pay that damn 10% penalty.
Here's hoping the process can be moved along quicker for you NG, so you can get your hands on some cash! But one way or another, you WILL get it!
[This message edited by Grace and Flowers at 5:33 PM, March 31st (Monday)]
"A good man with good intentions has no reason to lie" - somer222