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<< I am a federal government employee about to receive a court-ordered payment from my ex-spouse's Thrifty Savings Plan (TSP) in the amount of $8700. I would like to transfer the entire amount of this payment into my traditional IRA account, thereby avoiding a 20% federal tax. Since the court-ordered payment is from my ex's government 401(k), is this considered a transfer or not? >>

You can treat a distribution made under a "Qualfied Domestic Relations Order" (QDRO) as if it was from your own plan, which would allow a rollover. See IRS Publication 575 for the requirements.

Phil Marti
Tax Preparer
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