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Level 2
March 28, 2022
Solved

Property Transfered in divorce - 401 used to buy out

  • March 28, 2022
  • 1 reply
  • 9 views

I have a client who divorce last year. He paid his ex-spouse  his portion of equity using his 401k to do that.

Is there a form for taxes to report that.

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Best answer by CKJ

Thank you. We did talk about that after the fact. I just wanted to make sure there wasn’t a way. Yes he did get 1099R.

1 reply

Just-Lisa-Now-
Intuit Community Champion
March 28, 2022
He should have the 1099R from the distribution to report that income n his return.

Divorce settlements aren't a deduction for him, too bad he had to take the money from his 401k to make the payment.
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
CKJAuthorAnswer
Level 2
March 28, 2022

Thank you. We did talk about that after the fact. I just wanted to make sure there wasn’t a way. Yes he did get 1099R.