No. of Recommendations: 4
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 will probably be valuable to her.

Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.