Retirement

Generally, if you have a 401(k) retirement account and get divorced, your spouse will probably be entitled to a share of the money. The money that accumulates in a retirement account during marriage is considered a marital asset. Marital assets are divided between the divorcing spouses. The formula for dividing marital assets depends partly on the laws of the state in which you live and partly on your specific circumstances. In community property states, marital assets in general are split 50-50. Currently, the community property states are Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, and Wisconsin. In equitable distribution states, marital assets are divided equitably. The ultimate decision of what is fair is made by the court in your state. Generally, the court determines how much of your 401(k)retirement plan is a marital asset by dividing the number of years you have been married by the number of years you have been a plan member.

Generally, if you qualify for Medicare coverage based on your own employment record, the coverage can never be cancelled. If the Medicare insurance is based on your spouse's employment history, you might lose it when you get divorced. The key factor Medicare will consider is the length of the marriage. If you qualified for coverage based on your spouse's employment and remained married for at least 10 years, the Medicare coverage will stay with you even after you are divorced. If you were married for less than 10 years and did not work long enough to qualify for you own Medicare insurance, Medicare can drop you from its program.

No. Your annual contribution to a Roth IRA is not a deduction on your tax return. Distributions at age 70 and a half are not requires. Contributions after age 70 are allowed. Distributions are not taxable. IRA minimum distribution rules do not apply.

Visit http://www.medicare.gov/Nursing/Overview.asp to get current information from the US Government .

401(K) plans are designed to encourage long term retirement savings by employees. In some plans, the employer may contribute a matching percentage to the employee's contribution amount. 401(K) plans must meet a variety of IRS rules. Speak to your local CPA about setting up a 401(K) plan for your company.

You can collect reduced benefits based upon your spouse's earnings record today and switch them to your work record when you reach full retirement age. This could increase your monthly check, but it may not. The benefits you receive depends upon your work history.

Regardless of your age, you are not subject to the 10% early withdrawal penalty on 457 plan contributions and earnings. However, the penalty may apply to non-457 plan assets that are rolled into your 457 plan and subsequently withdrawn prior to age 59½.

A 457 Plan is a nonqualified salary reduction retirement plan that is available to government workers, including municipalities. There is no tax on the money you save through this plan or on what it earns until you take the money out. The catch is you can't take any money until you leave your job.

When you leave your job, you have basically three options: You can take all the money and pay tax on the money without penalty; If you are under 70 1/2, you can take installments on the money; or if you are under 70 1/2 you can leave the money in the plan. To determine which choice is suitable for your situation, please contact a CPA in your area.