Saratoga Divorce Attorney on the Tax Consequences of Receiving Part of a Deferred Compensation Plan

As an experienced Saratoga Divorce Attorney, clients often ask me about the tax consequences of receiving half of your spouse’s deferred compensation plan.

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  • 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 dedicated Saratoga Divorce Attorney Katrin Falco for guidance.

This educational video was brought to you by Katrin Falco, an experienced Saratoga Divorce Attorney in Clifton Park.

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