preparer227
Level 1
03-21-2021
12:21 PM
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Client divorced on4/15/2020 took total 401 K distribution of $146521.32 and gave x spouse $85000. How do I show in Proseries Basis? I realize there is no penalty but how do I show it on return for the $85000.
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IRonMaN
Level 15
03-21-2021
12:44 PM
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You don't if the full distribution was in your client's name. They have something called QDRO where the spouse gets part of the distribution directly. If someone's lawyer didn't go that route, your client should find another lawyer for their next divorce.
Slava Ukraini!
abctax55
Level 15
03-21-2021
12:46 PM
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AND consider contacting said attorney (if no QDRO done...) to discuss his/her E & O insurance.
HumanKind... Be Both
qbteachmt
Level 15
03-21-2021
01:21 PM
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The error happens often in an amicable divorce, where everything goes wrong because of no guidance.
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Don't yell at us; we're volunteers
Don't yell at us; we're volunteers
