We are offering a relatively new legal service that may be of interest to your clients. Because of the early withdrawal penalty, retirement funds can, at times, become trapped in an under-performing 401(k). In such cases, an intra-marriage qualified domestic relations order can be used to remove the funds from the 401(k) into an IRA in the other spouse’s name. The strategic use of an intra-marriage qualified domestic relations order can loosen funds from a 401(k) without a divorce and provide married couples more freedom in their financial planning. While the concept is not well tested in Nevada, we recently had one judge sign the order allowing this.
If you are interested removing funds from a 401(k) without divorcing and without penalty, contact Shann Winesett at Pecos Law Group.