IMQ Application #7: I Need CashDecember 21, 2021 10:45 am Leave your thoughts
Dipping into your retirement account for a cash distribution is a risky move. However, sometimes it needs to be done. Whether to pay debt, recover from a pandemic, pay for kids’ college or to build a dream home, when you need cash, you need cash. The tax on the distribution PLUS the 10% early withdrawal penalty makes this transaction very expensive. Yet, some people still proceed because of their situation.
We can help lessen the expense of this process. By utilizing our In Marriage QDRO®, we can teach you how to completely avoid the 10% penalty. Depending the amount of the intended withdrawal, that savings by itself may pay for the cost of this process. Additionally, although we cannot protect against the tax on the withdrawal, we may be able offer suggestions that reduce the tax hit by dividing the withdrawal into two tax seasons.
If other alternatives like a 401k loan or in-service distribution solves your problem, definitely proceed with using those options first. However, when they are unavailable or have restrictions that don’t meet your need, consider calling our team to go over these new and cutting-edge options.
Categorised in: 401K, Uncategorized
This post was written by Marcus Foote