Retire Early: QDRO Exception to 10% Penalty
Channel: Chris Grande
Date: 22/04/2017

Has the stress of a marital breakup had you thinking about ways to downsize the work emphasis in your life and bring life into more balance?

Looking for financial strategies to add financial flexibility? Then this video may help you.

Following up on our retire early?Quality of Life Theme from the last video, here is a situation that applies if you are in the unfortunate situation of facing a divorce.

QDRO (Qualified Domestic Relations Order) from a court ordering the split of a 401(k) plan provides a tax break to the receiving ex-spouse.

Normally, in most cases,  there is a 10% penalty to withdrawals from retirement plans prior to age 59 1/2. But if you receive funds in a 401k split from a "QDRO," the penalty doesn't apply to you. And you may be able to enjoy more flexibility after the split.

Watch to learn more about how this fits into your planning. Also find a bonus section on the updated IRS rollover rules and an outline of my upcoming videos on:

1. Retirement Income Spreading
2. Risks and pitfalls to serving on Boards as a director

As always hit me with any questions and let me know if you've experienced a divorce and a QDRO and how you handled it.

Links Mentioned in Video:

Belmont Veterans Memorial: 
http://belmont.wickedlocal.com/news/20160602/fundraising-under-way-for-new-veterans-memorial

IRS Exceptions to 10% Penalty:
https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-tax-on-early-distributions

Getting 10 Minutes of Sunlight Gets You Your Vitamin D
http://health.usnews.com/health-news/family-health/heart/articles/2008/06/23/time-in-the-sun-how-much-is-needed-for-vitamin-d

For more ideas on retiring early, see one of my recent articles here:
https://www.walnuthilladvisorsllc.com/2017/03/31/8-ways-access-money-retire-early/


Thanks for watching.
Remember to 80/20 Your Money (and your entire life!)

Warmly,

Chris Grande
http://chrisgrande.com/
Belmont, MA and Marin County, CA

Schedule a call/video call:
http://wha.setmore.com/


Note:

My articles and videos are meant to be educational and not specific advice. I assume my readers are big boys/girls and understand that, but in today’s climate I have to tell everyone again anyways – people might do something dumb and go hurt themselves! (like stick a fork in an electric socket or something – don’t do that!). Consult a qualified advisor before attempting financial strategies that you don't fully understand.