Get free answers to your legal questions from lawyers in your area.
I am considering withdrawing funds from my 401k to pay for legal representation and legal fees related to my divorce. I am no longer an employee at the company that holds my 401k. I'm exploring if this is possible and what penalties or taxes might apply. Are there any regulations or... View More 
Lawyers, want to be a Justia Connect Pro too? Learn more ›
answered on May 23, 2025
If you take money out of your 401(k) to pay for divorce legal fees, you’ll have to pay regular income tax on the amount you withdraw. If you’re under age 59½, you’ll also have to pay an extra 10% penalty to the IRS. Unfortunately, there’s no exception to this penalty for legal fees related... View More
I am considering selling my home to my daughter and continuing to live in it. What are the potential legal and tax implications for both me and my daughter? Would selling the house and then paying rent to stay there be a viable option?
Lawyers, want to be a Justia Connect Pro too? Learn more ›
answered on Apr 1, 2025
This question raises many issues. First, whether the exclusion applies to minimize capital gains tax on the transaction. There are requirements.
Secondly, if the property is sold for less than its fair market value, part of the transaction might be subject to gift tax implications.... View More
Justia Ask A Lawyer is a forum for consumers to get free answers to basic legal questions. Any information sent through Justia Ask A Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between Justia and you, or between any attorney who receives your information or responds to your questions and you, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask A Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises, or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
