Phone: 407-839-1364
Areas & Topics

Early withdrawal from 401K

The Internal Revenue Service reported that in 2011 it collected $5.7 billion in penatlies as a result of early withdrawals from 401K plans.  In that year, Americans took roughly $57 billion from their 401K plans as early deductions.

Normally, the distribution from a 401K plan as a result from a dissolution of marriage can be managed so that there are no penalties or taxes as a result.  However, early withdrawals from a retirement plan create another set of problems which needs to be addressed in a dissolution of marriage.  Depending on when the withdrawal occurs, such an early withdrawal can create a joint tax liability.  

No Comments

Leave a comment
Comment Information


Mercedes R. Wechsler, P.A.
1212 E. Ridgewood Street
Orlando, FL 32803

Phone: 407-440-0878
Fax: 407-839-0263
Map & Directions