In order for the QDRO payments to be deductible as alimony,
- It must be specifically classified as such in your divorce decree
- Also, the payment must be in cash.
Benefits paid under a QDRO to the plan participant's former spouse generally must be included in the former spouse's income. If the participant contributed to the retirement plan, a prorated share of the participant's cost (investment in the contract) is used to figure the taxable amount. Divorced and Separated Individuals Page 19
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