Tulsa, OK asked in Tax Law for Oklahoma

Q: In the decree my ex gets half of my 503b. Do I half to pay a tax penalty? I'm not trying to early withdraw.

I only agreed to the 50% for him because my atty said it would be from the date I moved out, not from the day he finally signed the divorce papers (3 yrs after I filed for divorce- I left in August 2016- divorce paper signed Dec 2019).

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1 Lawyer Answer
D. Mathew Blackburn
D. Mathew Blackburn
Answered
  • Tax Law Lawyer
  • Englewood, CO

A: You have to use a Qualified Domestic Relations Order (QDRO). Transfers subject to a domestic relations order are not subject to penalties but you have to do it correctly. Once the account rolls over to the other party if they then distribute money or anything else it's just like nay other transaction. It;s just the transfer subject to divorce that's exempt.

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