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.