More details to this question:
I'm about to go thru a divorce and wanted to know if I should close out my 401 k now?
1 ANSWER
Martha Feigenbaum
If you cash out your 401K, it still will be considered a part of the marital estate and subject to division. Furthermore, you will have to pay Federal Income Tax plus a 10% Federal Income Tax penalty. In some counties there are automatic injunctions prohibiting removing funds once a divorce action is filed.
Answered on Jan 14th, 2014 at 11:35 AM