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1099-R


Janitor Bob

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JB, these type of questions are very interesting. I don't get to see hardly any of these type of returns here in NC. However, I am pretty sure the divorce laws are similar in that a spouse can receive retirement from their significatn ex-other. Questions I have are: is this considered alimony? If so, then it would be pretty clear that the receiver has to claim the amounts as income and the payer gets the deduction. But, who pays the early withdrawl penalty if one applies? Is the penalty split as well? Really, it only seems fair. Does the receiver claim the withholdings as taxes paid? I would think so. Again, I find this interesting and would like to know if my thinking is correct. I'm sure you're having enough fun with these so I won't ask you to have more.

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JB, these type of questions are very interesting. I don't get to see hardly any of these type of returns here in NC. However, I am pretty sure the divorce laws are similar in that a spouse can receive retirement from their significatn ex-other. Questions I have are: is this considered alimony? If so, then it would be pretty clear that the receiver has to claim the amounts as income and the payer gets the deduction. But, who pays the early withdrawl penalty if one applies? Is the penalty split as well? Really, it only seems fair. Does the receiver claim the withholdings as taxes paid? I would think so. Again, I find this interesting and would like to know if my thinking is correct. I'm sure you're having enough fun with these so I won't ask you to have more.

It would be considered retirement income to the client. She would have had the option to send it dirctly into new or existing retirement account, but she took the cash disbursement .. The client found her 1099-R. Listing the full amount as taxable, but no penalty. Disbursements due to QDRO is exeption from the 10% penalty on early withdrawals.

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It would be considered retirement income to the client. She would have had the option to send it dirctly into new or existing retirement account, but she took the cash disbursement .. The client found her 1099-R. Listing the full amount as taxable, but no penalty. Disbursements due to QDRO is exeption from the 10% penalty on early withdrawals.

In addition, these QDROs are NOT alimony. Taxpayers are simply splitting the wealth that was built when they lived together.

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