Will I get penalized for moving my 401k to an IRA before my divorce trial? I lost my job.

Asked 10 months ago - Bronx, NY

My divorce trial is coming up and I want to move my 401k to an IRA. Since this is a QDRO acct I don't want to get in trouble with the judge. I'm not withdrawing any money, just moving it to my financial consultant to manage instead of the company's investment firm. I lost my job so my money is just sitting there.

Attorney answers (3)

  1. David Alexander Browde

    Pro

    Contributor Level 20

    5

    Lawyers agree

    Answered . The automatic orders preclude that activity without the consent of the other party.

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  2. David Ivan Bliven

    Pro

    Contributor Level 20

    3

    Lawyers agree

    Answered . Yes, if you transfer the funds without consent of the other party or court authorization, you will be guilty of contempt. The Automatic Orders prohibit such transfers: http://www.nycourts.gov/divorce/forms_instructi.... Schedule a consult with a Bronx Divorce lawyer for a full assessment.

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  3. Marco Caviglia

    Contributor Level 20

    Answered . Yes, but I don't think much will come from it if the money is all there and you have not placed it at risk, or if you have placed it at risk, that it holds its value. Your attorney should have been consulted and so s/he could advise you before you did it. Now that it's done, make sure your attorney is aware and addresses it.

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