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Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 12678
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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In my divorce his ex-wife was awarded $35,000.00 from his

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In my divorce his ex-wife was awarded $35,000.00 from his fidelity investments and she now wants it. My question is knowing that I’m only one that can take it out and have it sent to her what do I do about taxes and penalties? I am only 58, am I aloud to have fidelity calculate the proper taxes and penalty amounts and send her the remaining balance?
Customer: replied 3 months ago.
Addition info, because I am 58 there would be a penalty and then there is the taxes. There is nothing is the court paper that says that she nor I am responsible for the taxes and penalties. This was a very bad divorce and she was originally awarded 98,000.00 till the courts found out she was in content of court and she also charged with fault in this case. I don't feel I should have to pay the taxes and penalties if I don't have to.
Customer: replied 3 months ago.
Also the court ruled that her lawyer would take care of her getting the monies right away, it is now 2+ years later. I was wondering that if her lawyer has the power to get her money through court order would that relieve me of the responsibility of taxes and penalties?
Customer: replied 3 months ago.
Please get back to me as soon as possible, thank you

Hi. What you need to get from the attorney, or the court, is the QDRO (Qualified Domestic Relations Order) that was likely issued here.

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The only way that NEITHER of you would be responsible for the taxes is if a QDRO, a special order given to the administrator of your plan (Fidelity here) to move the amount to a special IRA set up for her, as a "transfer pursuant to a divorce."

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The amount is treated as a non-taxable rollover, so that only the person receiving the money (when sh takes it out of HER IRA) pays he taxes and penalties.

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Please let me know what questions you have from here

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Lane

Please let me know if you have ANY questions at all, before rating me.

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Thanks,

Lane

I hold a law degree, with concentration in Tax Law, Estate law & Corporate law, an MBA in finance, a BBA, and CFP & CRPS (Chartered Retirement Plans Specialist) designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice on three continents since 1986.

Customer: replied 3 months ago.
Thank you SO much I will follow this advise. I will also tell friends and family of the good service I received from you and this website. Thank you again, Ted
Customer: replied 3 months ago.
No thank you I do not need a call, I understand the instructions
Customer: replied 3 months ago.
Is this page printable?

Sorry Ted ... Didn't realize you had come back. You may be able to copy and paste into a document OR do a file-print from your browser ... You can also ask customer service to send an email transcript.

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You’re very welcome ... Your positive rating … (by using those the stars or faces on your screen, and then clicking “submit”) …is thanks enough.

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Thank you!

Lane

Lane and 3 other Tax Specialists are ready to help you

Hi Ted.

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I’m just checking back in to see how things are going.

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Did my answer help?

If this has helped, and you DON’T have other questions … I'd appreciate a positive rating (using the stars or faces on your screen, and then clicking “submit")

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But if you need more on this, please let me know.

Lane