Is a cash disbursement from a 401k that is deposited in a checking account before reinvestment windo

Individual that had a court ordered judgement to pay a specified monthly amount to a credit card company. Company has now placed a lien on personal checki9ng account but a portion of checking funds are from cash disbursement of a 401k still within the window of reinvestment time

Is a cash disbursement from a 401k that is deposited in a checking account before reinvestment window closes?credit check

It is common misunderstanding regarding 401 k.

You can take a cash disbursement and not face taxes, as long as you put the money into another fund within so many days. Then when you open the new fund the old one will transfer and taxes witheld into the new fund.

You have to get expert advice, a financial planner may have run across this before.

Is a cash disbursement from a 401k that is deposited in a checking account before reinvestment window closes?

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A lawyer will know how to handle this; they cannot touch the 401k money and there will need to be specific rules put in place so that is set aside. Contact a lawyer.|||Technically, even having the 401k funds placed into

a checking account invalidates the 401k status,

and makes it a cash disbursement.

Thus its no different than handing you the money.

My understanding of 401k is that you are never to touch

the money, or it invalidates the 401k status, and you owe all the penalities, etc.

Thats why you always direct transfer between

such tax special entities.

But as stated above, you need a lawyer on this.