QDRO
I realize this has been discussed on the board prior, however the last post I read was from 2010. Have the laws changed as it relates to the 10% penalty if a spouse uses here distribution from her divorced husbands 401K from the QDRO order to purchase a home?
Thank you.
Permalink Submitted by Alan - IRA critic on Thu, 2014-03-27 23:02
The use of the funds do not matter. Any distribution to the alternate payee directly from the 401k plan (not from an IRA), is penalty free. Tax provisions relative to QDROs has not changed in recent years.