Can retirement assets be accessed prior to retirement?
The answer really depends on the type of retirement plan. Though retirement plans should remain untapped for future use, sometimes, after a divorce, they represent a means of funding an unforeseen expense or for a down payment on a home. Even if you are not contemplating accessing these funds, you should know, prior to any agreement, how and when these funds may be accessed. Some plans may be drawn upon by the non-participant spouse after the plan administrator divides the plan, some may be accessed by rolling the account to an IRA, and others will be inaccessible until the participant spouse retires. All facts regarding the plan should be known in order to devise a plan that minimizes the tax costs of such transactions.
