Finally, you can choose to closeout your 401k plan and withdraw the money.

However, there may be taxes and penalties for this as we will see shortly.

A two-year engagement came to an end and then a position as a VP in a software start-up was over in eight months when the company started feeling the first strains of the oncoming global contraction.

Jones wasn't ready to retire and had a life-long interest in design and decorating.

One of the most common decisions during divorce is the division of your (and/or your spouse’s) 401k.

Your third option is to rollover your 401k into a new retirement savings plan such as an IRA (see below).Money is often a key consideration during your divorce process.How you address your finances during divorce has consequences which last a lifetime.Even if you have multiple IRAs, you can’t go over that limit for all accounts combined. Depending on which type you use, you’ll face different tax implications for contributions and withdrawals.There are a few exceptions to the early withdrawal penalty for Roth and Traditional IRAs (see below).When your retirement accounts are growing, it’s great to see the numbers climb.But when you retire and start taking money out of your IRA and 401k, the taxes you owe can take a surprisingly big chunk out of your total.