There are some exceptions to this -- especially for folks that are particularly young, or for emergency situations. Here is why you want to do this:
- There is a 10% penalty if you withdraw funds from a retirement plan before you are 59.5 years old. You do not have this penalty if the funds are rolled into another retirement account.
- Taxes are withdrawn from the amount transferred unless the funds are stored in a qualified retirement account.
If you have funds you need moved from an employer qualified plan, be certain to speak to a professional who can help you. Mistakes here can be disastrous.
Do you need help with a divorce or inheritance question regarding retirement funds or protected assets? Contact us! We can help. We operate in Virginia, Maryland, and DC -- and we have many years of family law experience.
Sean R. Hanover, Esq.
The Hanover Law Firm is located in Washington, DC and Fairfax, VA. We practice
in both state and federal courts in VA, MD, and DC.