IRS | QDRO states:
A spouse or former spouse who receives QDRO benefits from a retirement plan reports the payments received as if he or she were a plan participant. The spouse or former spouse is allocated a share of the participant's cost (investment in the contract) equal to the cost times a fraction. The numerator of the fraction is the present value of the benefits payable to the spouse or former spouse. The denominator is the present value of all benefits payable to the participant.
A QDRO distribution that is paid to a child or other dependent is taxed to the plan participant.
Thus, the IRS believes that each recipient has their own 1099-R. In fact, the Instructions for Forms 1099-R and 5498 state: Alternate Payee Under a QDRO
Distributions to an alternate payee who is a spouse or former spouse of the employee under a QDRO are reportable on Form 1099-R using the name and TIN of the alternate payee. If the alternate payee under a QDRO is a nonspouse, enter the name and TIN of the employee. However, this rule does not apply to IRAs; see Transfer of an IRA to spouse , earlier.
If your 1099-R is not correct, your options are limited:
- try and get it corrected
- file a 1099-R from you to the ex *(this allows the deduction @MarilynG1 mentioned above.
- live with it
*If you want to pass some of the income along to the ex- file a 1099-R from you to them. See General Instructions for Certain Information Returns.
Alimony and tax laws have changed but not all things related to them are changed. We have two sets of divorce rules in play based on the year of divorce so taxable to one may not be to another.
@katwilli58
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