I used the CARES Act to cash out my 401(k). My ex-employer waived the 10% penalty, but withheld 20% for federal taxes. Is there anything I can do to make my former employer release my money? Certified financial planner lizweston provides some guidance:
Justices heard a dispute over Trump administration rules to limit contraception requirements. Hospitalized Ruth Bader Ginsburg called in.If you qualified for a coronavirus hardship withdrawal from a 401 plan offering that option, the distribution should not have been subject to withholding.
You would owe income taxes but not the usual 10% federal early withdrawal penalty, and you would have three years to pay the income taxes on the withdrawal. You also would have the option to pay the money back within three years and then amend your tax returns to get the taxes you paid refunded. If your former employer did not offer coronavirus hardship withdrawals but you otherwise qualified, you had the option of rolling your 401 money into an IRA and then taking a coronavirus hardship withdrawal from the IRA. If your employer won’t release the withheld money, you still have a way to limit the damage. You can put the rest of what you received into an IRA, as long as you do so within 60 days, and then take a coronavirus hardship withdrawal from the IRA.
Unless you can come up with the $20,000 that was withheld, however, you’ll have to pay taxes and penalties on that $20,000 and you won’t be able to pay that money back. That’s unfortunate, but it’s better than having the entire $100,000 penalized and not having the option to pay any of it back.I’ve been separated from my husband for 50 years but there’s been no legal divorce.
If the two of you divorced and he re-married, his spouse could qualify for benefits on his work record -- but so could you. Since your marriage lasted more than 10 years, you could qualify for divorced spousal benefits as well as divorced survivor benefits . Your divorced spousal benefits would end if you remarry. If he dies and you get divorced survivor benefits, you would be able to keep those if you’re 60 or older when you remarry.
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