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Asked 8/3/2010

401k lump sum withdrawal given to spouse to avoid taxing

I am withdrawing the balance in my 401k retirement plan. Can I designate this as a gift to someone and not have to pay the taxes?

 
 
 
 
 
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Answer 1/1 - Submitted 8/3/2010

The only time you'll avoid taxes is if you have a Qualified Domestic Relations Order, or QDRO. Unless you're planning on divorcing your spouse and she gets it and rolls it into her own retirement plan as part of the property settlement, you will not avoid the taxes on the withdrawal.

 
 
 
 
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