401k about paying a spouse

Forum|Forum|7 years ago
June 1, 2019
1 reply
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If i was court ordered to pay half my 401k to my ex-spouse in a divorce settlement am I liable for the taxes or are they? also is there a deduction i qualify for?

TurboTax Free Edition Online

MichaelL1

Level 15

"A qualified domestic relations order – QDRO – is the document that transfers a portion of your 401(k) to your ex in accordance with the terms of your divorce decree. As long as you use one, there are no tax repercussions and the Internal Revenue Service doesn't treat the transaction as a withdrawal. QDROs are complex documents, but the task of creating one should not fall to you – you'll probably have to hire an attorney or accountant to draft one. "

Source: http://finance.zacks.com/tax-consequences-401k-divorce-settlement-4122.html

There is no deduction for giving half to your x-spouse.