By reinvesting the monies received into a rollover, then transferring the said monies into a Roth, i can avoid the 20% tax kill on the lump-sum and only pay the 10% penalty plus tax on taking out what i need. Its the paperwork that is a pain, for right now the QDRO is stuck in TIAA-Cref land for 3 weeks. But by figuring this out, i just saved myself $9200. Homework, people. Do it.
Found the QDRO loophole, finally
- Thread starter CycloneYoda
- Start date
Figuring out the "don't get married" loophole woulda saved you a helluva lot more than that.
wink:
You don't really understand what you think you understand.
You are confusing indirect rollover, early (59.5 or younger) penalty, ordinary income, etc. I would strongly encourage you to talk to someone that knows what they are doing because you may wind up with surprises in 2015.
if you have a ongoing need you could simply do a 72t but it is rarely the silver bullet many think it is.
After reading this thread and your timing belt thread, I'm guessing that you're not very good at managing money.
I lose and gain small fortunes about equally, yes. But I'm great with other people's money.
