As a Dallas divorce attorney, I often encounter clients who are concerned about the tax implications of receiving 401(k) funds during a divorce. In this blog post, I will provide some general information on the topic and explain the options that are available to those who expect to receive 401(k) funds during a divorce.
In general, there are only two things that can be done with 401(k) funds that are received during a divorce. The first option is to take the money as a lump sum payment. If this option is chosen, the individual will have to pay taxes on the money. The second option is to roll the funds over into another retirement plan. If this option is chosen, the individual is likely to not owe taxes on the money.
It’s important to note that the information provided in this blog post is general in nature and should not be considered as legal or financial advice. Each individual’s situation is unique, and it’s essential to consult with a financial advisor and a tax expert to understand the specific implications of receiving 401(k) funds during a divorce.
If you have any questions about this topic or any other aspect of divorce and child custody matters, please don’t hesitate to reach out to me or any other attorney at The Blacknall Firm. We are here to help Texas families navigate the legal process, and we would be happy to assist you.