re: IRA early withdraw to fund another. (Update)

quote:

---

I'm still more concerned about the offer from the company than I am about how the couple will fund the contribution. Is it just me?

---

The company has requirements for when its matching contributions must be paid to the plan administrator. It's not like the company gets to write an IOU for contributions. That only happens with defined benefit plans, not defined contribution plans.

The divorce angle cannot be avoided in Louisiana. It's not terribly difficult to split the assets in a retirement plan unless one of the spouses was participating in a plan prior to marriage. In that case the balance of the account at the date of marriage is the separate property of the participant spouse, and it remains separate property (including income earned on the seperate property portion during the marriage). Allocating the income of the plan between the separate property and community property portions is always fun since the contributions and dates of income being earned don't ever match. I've done retirement account analysis for several divorces, and there is always one spouse who is dissatisfied with the results, but the law is pretty clear as to what the result must be.