Originally Posted by
Jazzman Maybe your lawyer is saying 28% remains in your husband's plan because he will pay taxes on it when he withdraws it, including your share as part of the settlement?
I don't think so, once the asset is split they each handle distributions separately..... this one-time split doesn't play into future distributions from either account.
So if/when he withdraws in the future, his tax due will depend on his personal tax rate & income for that year... it has no impact on her at all, then or now.
Vice versa too - whenever she decides to make withdrawals her tax due will be calculated on her individual tax rate & he doesn't factor into it at all.
I'm very curious to hear what this relates to.... I've been puzzling over it all day!