Thomas Rogers
Well-Known Member
Coastie,
Here is how I look at it (not judging, but I am choosing my words intentionally below).
In one statement you say that you each agreed to not touch each others retirement accounts and I can understand that from the standpoint of trying to keep things civil.
Then, in the next statement, you say that your ex is using her 401k to pay you what she owes you, and to be a nice guy, you are letting her do that that NOT through a withdrawal, but essentially through a QDRO, as I described above. I say that because it would be ONLY through a QDRO that you can roll-over the funds into your TSP and neither of you get penalty or taxes.
So, you said, you weren't OWED any of her 401k, but through choices you are both making you are getting a part of her 401k, and getting it in the same manner you would if you were owed it via a QDRO.
So, since you are being a nice guy, you have to roll over the money, and then you have to take a loan against your TSP if you want to pay your bills.
That's all good. But if it were me, I would have her pay you in a liquid form. Have HER borrow the money from here TSP. That way she gives you cash, tax and penalty free, and she pays herself back her own loan.
If I were your accountant I would advise against what you are describing, if for no other reason that I think you are taking money that should have already been taxed and putting it into a "to be taxed later" vehicle, essentially having taxes paid on those monies twice.
TJR
Here is how I look at it (not judging, but I am choosing my words intentionally below).
In one statement you say that you each agreed to not touch each others retirement accounts and I can understand that from the standpoint of trying to keep things civil.
Then, in the next statement, you say that your ex is using her 401k to pay you what she owes you, and to be a nice guy, you are letting her do that that NOT through a withdrawal, but essentially through a QDRO, as I described above. I say that because it would be ONLY through a QDRO that you can roll-over the funds into your TSP and neither of you get penalty or taxes.
So, you said, you weren't OWED any of her 401k, but through choices you are both making you are getting a part of her 401k, and getting it in the same manner you would if you were owed it via a QDRO.
So, since you are being a nice guy, you have to roll over the money, and then you have to take a loan against your TSP if you want to pay your bills.
That's all good. But if it were me, I would have her pay you in a liquid form. Have HER borrow the money from here TSP. That way she gives you cash, tax and penalty free, and she pays herself back her own loan.
If I were your accountant I would advise against what you are describing, if for no other reason that I think you are taking money that should have already been taxed and putting it into a "to be taxed later" vehicle, essentially having taxes paid on those monies twice.
TJR