Hello,
My child’s father is court-ordered to pay child support through our local (MD) CSE. He lost his job about a year ago and is now $10,000 behind in child support, plus arrears. CSE has not really enforced anything. So far, I’ve been scraping by, but managing on my own. Lately, I’ve had some car issues, and my rent is being raised soon as well.
I know the non-custodial parent does not have a job, but I do know that he has a 401(k) that he has not withdrawn. Is his 401(k) able to be garnished for some of what he owes? I don’t want to deplete it, but I would appreciate something to give me a bit of a cushion while I am dealing with financial difficulties.
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In most jurisdictions, retirement funds cannot be garnished for back support if the person is not of legal age to access them.
However, in Maryland, retirement accounts are not explicitly protected from garnishment. After obtaining a court order, it is possible to garnish a retirement account, but there will be early withdrawal penalties.
To proceed, you must file with the court to approve the garnishment for the owed arrears. The court will determine the amount owed and order the garnishment. The individual will need to withdraw more than the owed amount to cover penalties and taxes (e.g., withdrawing $15,000 if $10,000 is owed). A CPA can help calculate the exact amount needed.
Given the complexity and potential costs, it’s advisable to consult with a family law attorney, who might help recover enforcement fees, or speak to a Family Law Facilitator if available in your county.
In some circumstances, a 401(k) may be garnished to pay delinquent child support. Make contact with the Child Support Enforcement (CSE) office in your area and ask them to initiate the process of garnishing the 401(k) to cover the outstanding balance. To investigate this choice and make sure all available legal channels are used to obtain unpaid support, it might also be helpful to speak with a family law professional.