Getting divorced after 25 years. I’m getting 1/2 of her 401k. Because of the home market we will be lucky to get what we owe on the home.
I need a down payment for a new home can I cash out my 1/2 of her 401k to put down on a new house. I’m looking at a $25,000 share of the 401k or trade the 401k for the home. we have 60,000 tied up in the home,
Honestly, I don’t know. Much of if this is a right move for you or not depends on the tax ramifications of the disbursement to you. I’d suggest you talk to a tax adviser about his important issue. I’m just not certain how a disbursement from a 401(k) is treated in this situation or if the money can be taken penalty free and how much you will lose to taxes. All of that is a big consideration in determining if this make sense.
Please update me on your progress by posting updates here in the comments section of your question. I’m very interested in how this works out for you.
P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.