Domestic Relation Order for taxes were does it go on tax form

thebarries2001 · ‎May 31, 2019

DexterS · ‎May 31, 2019

If there were distributions from your retirement account subject to a QDRO and you have not reached the age of 59 1/2 you can avoid the 10% Early Withdrawal Penalty by using Exception #6 while preparing Form 5329 - Additional Taxes on Qualified Plans.

Exception #6 - Qualified retirement plan distributions made to an alternate payee under a qualified domestic relations order (does not apply to IRAs).

To enter in TurboTax:

After you enter your 1099-R you will come to a screen that says "What Did You Do With The Money From Payer"?
Here you will indicate that you did something else with the money.
Follow through the next few screens until you see: "These Situations May Lower Your Tax Bill"
Enter the amount that was subject to the QDRO in the last box "Other Reason". This will eliminate the Federal and State penalty on that money.