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Author: aj485 Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75339  
Subject: Re: Divorce/Retirement Date: 1/20/2010 12:17 AM
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In her words "she has been a kept woman" where were husband dealt with all the financial issues. As I said this has been amicable and he was been the bread winner of the unit but she wants to avoid any tax consequences.

Have your friend consult both an attorney and a tax professional about the QDRO, but it should be able to be structured so that she only has to pay taxes on the withdrawals. As the money was put into the account on a pre-tax basis, they jointly avoided taxes while they were married. She will pay taxes on the withdrawals as she uses the income after the divorce. He will also pay taxes on the withdrawals from his part of the account.

IRS Pub 504 http://www.irs.gov/pub/irs-pdf/p504.pdf will probably be valuable to her.

AJ
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