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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 10149
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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Divorced, 401 Quattro filed May 2014 and distributed Apr

Customer Question

Divorced, 401 Quattro filed May 2014 and distributed Apr 2016. Now reading that they can also come for gain over Quattro, as I continued to pay into 401 account. My paid attorney, said only a short time! I believe I'm not getting best advise ? Thx Dick
Submitted: 3 months ago.
Category: Tax
Expert:  Lane replied 3 months ago.

Hi. My names Lane. I can help here.

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The QDRO (Qualified Domestic relations Order) is what allows money to be moved to the spouse getting an award OF that money without taxing the person LOSING that money for the distribution.

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That's all it is, a form of tax relief. (SO that the spouse getting the money has to pay tax on it as she withdraws the money)

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But whether a court awards FUTURE money (money after the divorce is final) is a product of the TERMS of the divorce.

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It's VERY rare for a court to award future contributions to a defined contribution plan such as a 401(k) ... Why? becasue there's no guarantee that the ex will continue to make contributions ... that's completely voluntary.

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What IS common is for payouts from defined benefit plans, such as monthly pensions that are based on how long an individual worked there, to be awarded and paiud out or partially awarded to an ex.

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DO you have the decree Handy? I'd be glad to take a look.

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but again the QDRO isn't relevant ... it's what the decree or sparationg agreement AWARDED that will drive what your ex has a right to.

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Please let me know what questions you have from here.

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Lane

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I hold a law degree, with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in financial accounting & tax, a BBA, and CFP & CRPS designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, since 1986

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