my share of ex's profit share is 67,000. I need 25,000 in cash.How do I reinvest the bal. if not 59 1/2?

Question

Through a QDRO I was awarded 67,000 from my ex's Profit Sharing.I need a cash distrubution of $25,000 and was considering rolling over the balance to a self-directed IRA. I am 50 years old and want to know the smartest way to do this w/out all the tax consequences???HELP

Answer 1

You will be taking $25k out of an account that is essentially treated like an IRA. You'll pay ordinary income tax (just add that $25k to your 1040 and get out your checkbook), plus a 10% penalty. If this puts you into the 28% income tax bracket for instance, the tax consequence will be $9,500 ($25k x 28% + 10%).

What do you really need the $25k for and is there any other source (i.e., other savings, home equity loan, etc.)?

Answer 2

there is no way you can not pay the taxes!!!