She Pulled Cash From His $900,000 401(k) at 51 With No 10% Penalty. The One Divorce Rule That Waives the Under-59½ Tax the IRS Enforces on Everyone Else.

She Pulled Cash From His $900,000 401(k) at 51 With No 10% Penalty. The One Divorce Rule That Waives the Under-59½ Tax the IRS Enforces on Everyone Else.

Divorcing spouses under 59½ can legally pull cash from a 401(k) without the IRS penalty that applies to everyone else, but the exception operates inside a narrow window that most people unknowingly close before they ever reach it.

She Pulled Cash From His $900,000 401(k) at 51 With No 10% Penalty. The One Divorce Rule That Waives the Under-59½ Tax the IRS Enforces on Everyone Else

The post She Pulled Cash From His $900,000 401(k) at 51 With No 10% Penalty. The One Divorce Rule That Waives the Under-59½ Tax the IRS Enforces on Everyone Else. appeared first on 24/7 Wall St.. If you are under 59½ and splitting a 401(k) in a divorce, there is a one-time window that lets the…