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avazquez853
New Member

Can I write off distribution from my 401K paid to my ex-wife through a QDRO as a loss, not as a divorce settlement?

I understand that 401K distribution through a QDRO as part of a divorce settlement can not be deducted as alimony, but can it be written off as another loss, since in essence, I am losing monetary value of my retirement account?

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Accepted Solutions
macuser_22
Level 15

Can I write off distribution from my 401K paid to my ex-wife through a QDRO as a loss, not as a divorce settlement?

No. It is not a loss.  It is a divorce settlement.   A QDRO payment should go from the plan directly to your ex and she should receive a 1099-R and pay the tax.  There is  nothing for you to  do or report.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

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2 Replies
macuser_22
Level 15

Can I write off distribution from my 401K paid to my ex-wife through a QDRO as a loss, not as a divorce settlement?

No. It is not a loss.  It is a divorce settlement.   A QDRO payment should go from the plan directly to your ex and she should receive a 1099-R and pay the tax.  There is  nothing for you to  do or report.

**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**

View solution in original post

Critter
Level 15

Can I write off distribution from my 401K paid to my ex-wife through a QDRO as a loss, not as a divorce settlement?

NO.  But an interesting thought pattern.

The ex should get her own 1099-R for the distribution so you have nothing to report on your return.

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