I wiil be receiving a divorce settlement being paid from my ex’s 401K, will I have to pay tax on this? I do not have a 401k or IRA of my own.
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denisedesmarais
New Member

I wiil be receiving a divorce settlement being paid from my ex’s 401K, will I have to pay tax on this? I do not have a 401k or IRA of my own.

The payment I am receiving is 50% of what was paid into the 401k during the marriage. He will be taking the monies from his 401k to pay me my half.

2 Replies
Critter
Level 15

I wiil be receiving a divorce settlement being paid from my ex’s 401K, will I have to pay tax on this? I do not have a 401k or IRA of my own.

Depends ... if he takes the distribution from the 401K  in his name then he will pay the taxes on his return.

However ... if this is done pursuant to a QDRO  from the court and the distribution is made out directly to you then you can :

1) keep it and pay the tax on it 

2) roll it to an IRA that you set up for this ( within 60 days ... if you can have the distribution be made directly to the IRA account that would be best) ... and this way you pay no taxes now.

3) keep some of it  & roll some of it 

denisedesmarais
New Member

I wiil be receiving a divorce settlement being paid from my ex’s 401K, will I have to pay tax on this? I do not have a 401k or IRA of my own.

Thank You very much, this is very valuable information!
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