Saratoga Divorce Attorney on the Tax Consequences of Receiving Part of a Deferred Compensation Plan
Are you worried about the tax consequences of receiving part of your ex’s compensation plan? Watch this educational video, then give our attorneys a call to set up a free review.
Question:
What are the Tax Consequences of Receiving Part of a Deferred Compensation Plan?
Answer:
As an experienced Saratoga Divorce Attorney, clients often ask me about the tax consequences of receiving half of your spouse’s deferred compensation plan.
- Parties are entitled to receive their marital portion of a deferred compensation plan with no tax consequences attached to its actual distribution because it’s a transfer incident to the divorce.
- As the qualified moneys they are, funds take the form of an IRA or 401K – depending on the deferred compensation plan.
- Tax consequences and penalties accrue for early withdrawal after receipt of the marital distribution, so it is wise to speak with a tax adviser beforehand.
Are you worried about the tax consequences of receiving part of your ex’s compensation plan? Contact our experienced Saratoga Qualified Domestic Relations Orders (QDRO) Lawyers today for a consultation and case evaluation.
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