Can a divorced parent rollover their 401(k) into their child's 529 plan without incurring a penalty?

Is it possible and sensible to rollover my 401(k) from a former employer (approximately $36,000) to a 529 plan for my son? I am 48 years old. My ex received $50,000 out of my 401(k) when we divorced. I know I would get taxed, but I heard I could do this with zero penalty if I was divorced. Is this correct information?

Marriage / Divorce, 401(k), Taxes
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November 2017

I believe that you may have misheard.  If it is your plan, even though you are divorced, you would still be subject to the 10% penalty if under the age of 55. Together with the tax and penalty, you may have as little as 45 percent left.  Without detailed calculations, I am not sure that it would be worthwhile to make that change and then you would still be short at retirement.

If you had received the right to an ex-spouses 401(k) then you may not be subject to the 10% penalty.  However, since it is your 401(k), you are.

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