I was awarded 61K from my ex-husband IRA former his former employer pension plan. Will i be penalized and have to pay taxes or will my husband have to pay the taxes on the funds before they are transferred to me. I want to use the money to buy me a home. I will not be retirement age for another 6 years.
Depends if your husband transfer the money out of his account or whether the account is transferred pursuant to a court order to your IRA and then you take it out. Speak with a CPA about the tax consequences. If you take money out if the IRA too early there is a 10 percent penalty and it is taxable at your marginal tax rate.
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Depends on what kind of IRA it came out of.
Attorney Williams practices FAMILY LAW throughout the State of California. The response provided in this forum is not intended to create an attorney-client relationship. The information offered in this response is for general informational purposes only and should not be relied upon without further consultation with a legal professional after all relevant facts are disclosed and considered. DANIEL S. WILLIAMS, ESQ. LAW OFFICES OF DANIEL S. WILLIAMS 500 LIGHTHOUSE AVENUE, STE. A MONTEREY, CA 93940 (831) 233-3558 -- OFFICE (831) 233-3560 -- FAX
Estate Planning Attorney
You will have to pay ordinary income taxes on your withdrawal. If you are not yet 59 1/2 years of age, you will also have a penalty. You need to consult with your financial advisor to find out how much your taxes will be.
As a general rule, the provider of the IRA will withhold 20% of the distribution. You need to check with your financial advisor to see if you are old enough to avoid the withholding.
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