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Old 04-11-2013, 01:52 PM
  # 30 (permalink)  
FireSprite
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Join Date: May 2012
Location: Florida
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Originally Posted by Jazzman View Post
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!
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