My company gave me paperwork that states if I go to a financial institution, my husband has to sign a waiver saying he doesn't want any claim to the money if I am not assigning him as the beneficiary. If I want the cash I have to agree to the 20% withdrawal. I was making $46,000. per year, so my tax bracket shouldn't be so high that the company should hold 20%. I also asked if I paid 20% when I didn't need to and my husband didn't pay taxes and getting a 1099, at tax time will they penalize me since we do joint tax returns.