401(k) distribution related to divorce decree
Hi all,
I have a client who took out a large sum from a 401(k) as part of a divorce decree. The divorce was finalized by the end of 2025. The 1099-R is only in my client's name, and is being treated as an early withdrawal with the 10% penalty. The divorce decree states that certain portions of the 401(k) including nonvested stock was awarded to the ex, but the 1099-R doesn't reflect this at all.
From what I've read, I believe both my client and his ex should have received 1099-Rs for their respective portions of the retirement distribution. Is the best way to go about this to request corrected 1099-Rs, or is there a way in ProConnect to show that the ex was an alternate payee under a QDRO? I appreciate any insight, thanks in advance!
