IRA Deduction

Forum|Forum|6 years ago
May 1, 2020
1 reply
4 views

I was 70 years old all of 2019. I deducted $66,000.00 from my IRA to pay my ex wife a divorce settlement. Am I responsible for the federal tax on this amount?

macuser_22

Alumni - Champ

I think you mean that you distributed from your IRA. You are responsible for any tax on the distribution that was from your IRA. The tax law does not care what you did with the money.

Your divorce agreement should specify whether you can subtract the amount of tax that you must pay from the amount sent to your spouse. On division of retirement assets, who ultimately pays the tax, is usually part of the agreement. That is a legal issue that you should ask your divorce attorney.

**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.**

mbyersAuthor

Level 2

Thanks. Very helpful.

Critter

Level 15

Sadly this is taxable to you ... for it to be taxable to the EX the court had to issue a QDRO and the IRA custodian would have rolled that amount into an IRA for the spouse and if they choose to to take a distribution then they are on the hook for the taxes.