How do I transfer my 401k after divorce?
How do I transfer my 401k after divorce?
Spouses on the receiving end of a 401(k) distribution after a divorce have three basic options for getting the money. The first option is to roll the assets over into your own qualified retirement plan by requesting a direct transfer. This allows you to avoid having to pay a penalty on the money.
Is a QDRO considered income?
Taxes. When an ex-spouse receives distribution of plan benefits pursuant to a QDRO, he or she is responsible to pay the associated income tax. Distributions made pursuant to QDROs are generally taxed in the same manner as any other “typical” plan distribution.
What is a QDRO in a divorce settlement?
According to the Internal Revenue Service, a QDRO is “a judgment, decree, or order for a retirement plan to pay child support, alimony, or marital property rights to a spouse, former spouse, child, or other dependents of a [retirement plan] participant.”
What qualifies as a QDRO?
A QDRO is a judgment, decree or order for a retirement plan to pay child support, alimony or marital property rights to a spouse, former spouse, child or other dependent of a participant.
