I have two retirement accounts that will both get split after my divorce that just got finalized. One is a Roth IRA, the other a 401(k) account.
Is it possible to cash out money because of the divorce without paying the penalty ?
What are the taxes that need to be paid on both ? Do I have to pay capital gains on the growth in the Roth ? Assuming everything I bought is over a year old, is it long-term capital gains ?
Do I need to pay capital gains on the growth in the 401(k) ? Do I just pay income tax on the whole amount ?