Keep the house or take the 401(k)?

Questions this usually raises

Is a house worth the same as a 401(k) of the same value?

Rarely. The house costs money to sell and may carry tax on the gain above the exclusion, and it costs money every month to keep. The 401(k) is taxed as income when withdrawn, but it is liquid. The calculator puts both after costs and tax so they can be compared.

Will I pay a penalty for taking money from an ex-spouse’s 401(k)?

Not if it is transferred under a Qualified Domestic Relations Order and any cash is taken directly from the plan. The ten percent early withdrawal penalty does not apply to those payments. If the money is rolled into an IRA first and then withdrawn before 59 and a half, the penalty applies.

Does this tell me what to do?

No. It shows what the two sides are modelled to be worth on the assumptions you set. A divorce financial specialist or a lawyer can weigh the parts the calculator cannot: your income, your state’s rules, and what the house means to you.