<removeps-groups[at]yahoo.com> wrote
- quote -




To talk to an attorney? Probably cheaper than the tax on the distributed
amount if it's done wrong.




--
Paul A. Thomas, CPA
Watkinsville, Georgia

--
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Paul Thomas wrote:
- quote -

comply with federal law but it must also comply with state law.
Every state that has a 457 plan will have a statute on the books
and corresponding rules and regulations for their 457 plan.
Buried in those rules & regulations will be the requirements for
a valid QDRO.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

On Sep 14, 1:32 pm, "Paul Thomas" <paulthomas...[at]bellsouth.net> wrote:

- quote -

About how much does it cost?

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

- quote -

The U.S. Supreme Court has a case, "Kennedy v. Plan Administrator for Dupont
Savings and Investment Plan," scheduled for argument on its fall docket.
The issues at controversy in the Kennedy case are not precisely on point
with your question but they do validate Paul Thomas' advice about making
certain your arrangement is crafted carefully and follows legal
requirements.

You can read a synopsis of the Kennedy case on the second page of the link
pasted below.

See: "Qualified Plan Queries: Supreme Court to Examine QDROs as the Only
Waiver to Retirement Benefits"

http://www.millerchevalier.com/files...020%202008.pdf


Condor

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

"R. Pile" <michael.bratt[at]wdn.com> wrote
- quote -


If done wrong, the husband gets stiffed with the tax bill.

So, talk to the husband's attorney and get a QDRO - Qualified Domestic
Relations Order. They'll know what you're talking about, and if not, find
another attorney who does.



- quote -


The QDRO splits the pension with no current tax implications. What she does
with it after that is her call.





- quote -



She needs to talk to her legal and tax advisors.

He needs to do the same.






--
Paul A. Thomas, CPA
Athens, Georgia

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

Husband and wife are getting a legal separation. He is 59, she turned
55 in 2008. He retired two years ago from New York State and has a
balance of a couple hundred thousand dollars in his 457 account.

As part of the agreement, she will get one-half of his account
balance. What are the tax and penalty implication of this transfer?
She has not worked in recent years, but has an IRA account.

Does this transfer need to be wholly rolled over to this IRA to avoid
taxes and penalties?

If she takes part of the transfer in cash and part as a rollover to
her IRA, presumably the cash portion is taxable income. Is there also
a 10% penalty on this portion?

If she rolls over the entire amount to her IRA and later withdraws
some of those funds, will there be penalties? Once the funds are in
her IRA, does she need to wait to age 59.5 to avoid penalties?

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >