| gonetolong |
| (recently joined) |
| 03/03/07 09:21 AM |
401K in Divorce Case
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Need Advice
STBXW is asking for all of my 401k of $107,000. but she has agreed to use the money to pay off all car loans and credit cards debts. Also back in 2006 she took out a loan against my 401K of $31,000. I have been paying back to this loan from my check each month and it's down to $26,700. She seems to think that after the divorce I dont have to pay this money back.
I have been told before she receive any amount that the loan against my 401K will be taken out first and what would be the total taxes taken out before she receive any amount, I have gotten two answer on what the taxes would be 30% and 35% income taxes. Which is the right amount of taxes to be taken out before she receives any money.
| Miranda |
| (Carpal \'Tunnel) |
| 03/03/07 05:06 PM |
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Re: 401K in Divorce Case
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No way in hell she is getting all of it, and don't even think about allowing it. She will get what is ordered in c court. She will have to get her own money to pay off her portion of the marital debt.
| spinnerdegrassi |
| (Carpal \'Tunnel) |
| 03/04/07 03:14 PM |
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Re: 401K in Divorce Case
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Any withdrawl would be whatever your income tax bracket is (say 25%) plus a 10% penalty if you're under 59.5
Right now you say your 401k is worth 107k. But you still owe @ 27k in loans on it. So it's current value is @ 80. If she was to hypothetically take it all out, it would drop to @ 50k after taxes if not less.