Troyan, A Legendary Actuarial Consulting Firm, For Pension Evaluations.

Court Admissible Reports Per Your Jurisdiction at an affordable cost.

We specialize in retirement plan analysis for divorce & economic loss matters

court admitted pension experts, available to testify nationwide.

Pension evaluations prepared for lawyers, mediators, & non-attorney litigants.

We guarantee your qdro gets approved!

headquarters of troyan, inc. Home of accucalc & accuqdro software

Pension Evaluation Lawyer Services Downloads Fee Schedule Pay Online Online Order Form
Pension Evaluation
Basic Pension Principles
Cases
Community Property
Dividing Marital or Community Property
Divorce & Retirement FAQs
Equitable Distribution
Experience with Your Plan
Pension Evaluation Issues
Pensions
Retirement Terms
Social Security Offsets
State Pension Evaluation Alerts
State Pension Evaluation Classification
State Specific Information
State Retirement Plans and Divorce Information
State Listing of Statuses Disallowing Personal Identities In QDROs
State Analysis of IRA Exemptions
Collection Laws and Exemptions by State
Tax Treatment in Pension Evaluation
Distribution from Qualified Plans
Webutation
Click here to learn more about pension evaluations
Get a pension evaluation in less than 1 week Click here to read and print our company forms

What Are The Tax Consequences Involved In A Distribution From A 401(k) Plan Via A QDRO Due To A Divorce?

Q. Debra T. of Texas asks: "I am supposed to receive a portion of my ex-husband's 401(k) Plan and need to access these funds as soon as possible. What are the tax consequences involved in a distribution from a 401(k) Plan via a QDRO due to a divorce?"

A. Evan L., from the QDRO Department of Pension Evaluators® at Troyan, Inc.®answers: "Payments to a former spouse (alternate payee) pursuant to a QDRO are considered a taxable event to the recipient, not to the participant. Thus the Alternate Payee shall bear all tax liability on the Assigned Benefit distributed to the Alternate Payee, and said distributed Assigned Benefit shall be allocated a portion of the Participant's after-tax cost basis and/or company stock cost basis, if any, in accordance with Internal Revenue Code Section 72(m)(10). If a lump sum is paid via the QDRO, it is not subject to the premature distribution 10% excise tax penalty, regardless of the age of the alternate payee. This is true whether or not the lump sum is rolled over into an IRA. While the federal income tax rates are set for each income bracket, state income tax rates may not necessarily align with federal figures."

Evan Edelstein

QDRO Writer

DISCLAIMER: Any legal information on this blog has been prepared by Troyan from informational purposes only and should not be construed as legal advice. The material posted on this website is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Note that sending an e-mail to Troyan does not create an attorney-client relationship, and none will be formed unless there is an agreement between the firm and the individual.
Visitor Security About Us Resources Contact Us
The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.