income averaging

Forum|Forum|4 years ago
February 1, 2022
4 replies
26 views

Under the QDRO exception I withdrew $235,000 from the 401K that the QDRO transferred to me. Is there any income averaging I could do?

Best answer by MinhT1

The 10-year income averaging is no longer allowed after 1986.

You'll have to pay tax on your QDRO withdrawal in the year of withdrawal.

Please read this IRS document for more information.

MinhT1Answer

Level 15

The 10-year income averaging is no longer allowed after 1986.

You'll have to pay tax on your QDRO withdrawal in the year of withdrawal.

Please read this IRS document for more information.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

Rocky22

Level 2

income averaging eligibility for large 401k withdrawal

NCperson

Level 15

@Rocky22 - are you asking whether you can average your 401(k) withdrawls and report the income over more than 1 year? to my knowledge, there is no such thing. If you receive cash from your 401(k) - a taxable distribution - , the IRS wants its fair share in that same tax year. What I think you are asking is whether you can get the cash in one year but not pay the related tax until future years... Not to my knowledge.