I willbe getting a settlement from my exes retirement.
They stated I wouldn't be able to access this until retirement age. I have 2 young children and wanted to be able to have access to that money for them. I wanted half to go into an IRA/401 and for me to keep the other half so that its available.
Would there be a penalty for doing this?
Excellent question @Jaws78, I was able to locate your profile and will engage the appropriate area. Once reviewed they will reach out to you, we do appreciate your patience in advance. -Emily
@Jaw78 - You need guidance from a lawyer or an accountant and USAA is neither. In general, taking money from a retirement account before 59 1/2 will generate tax and penalty. Also there could also be some repercussions if it not transferred correctly from your ex to you (should be done via QDRO). Again, you need guidance from someone who is familiar with your circumstances.