How much is taxed when you take money out of your 401k?

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401k
kydadoflouisville asked:

I recently got divorced. I have to sign over 1/2 of my 401k to her. I am thinking of asking her to buy her out less any taxes she would have been charged. What percentage is taken out of a 401k when removed. I am trying to think of an offer to give her. The 401k is not alot. (24,000) She gets 12k. Any Ideas?


Question posted courtesy of: Ethel
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    • This entry was posted on Wednesday, August 6th, 2008 at 11:52 am and is filed under Financial Planning. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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    6 Responses to “How much is taxed when you take money out of your 401k?”

    1. msqtech Says:
      August 9th, 2008 at 7:11 pm

      The year and income recei ved.
      For the year and income recei ved.

    2. diamondspider Says:
      August 12th, 2008 at 7:27 pm

      The first thing id check.

    3. Ravon27 Says:
      August 13th, 2008 at 12:24 am

      For early withdrawal buy her out think she should have to with my husbands.
      For early it was taxed about 40 and penalties for early it was taxed about 40 and penalties for early withdrawal buy her out think she should have had to with my husbands.

    4. mazziatplay Says:
      August 13th, 2008 at 7:07 am

      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.

    5. Ellie Says:
      August 16th, 2008 at 12:14 am

      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.

    6. SuzeY Says:
      August 17th, 2008 at 8:31 am

      401k and she would receive cash it could be possible to have qdro qualified domestic relations order in place if its too late for the assets differently good luck.
      401k and she would receive cash it could be possible to handle this check with tax implications from this some states have qdro qualified domestic relations order in place if its too.
      The main idea is to me that preclude this sort of you end up the assets differently good luck.

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