CALIFORNIA FAMILY LAW
...Income Tax Matters
......Community Property: Assets
.........Employment/Retirement Benefits
............Tax Consequences of Transfer
 15 Cards On This Topic:
  • Benefits received by nonemployee spouse per QDRO are taxable to him/her.
  • Transfer of IRA to former spouse in dissolution not considered taxable event.
  • W’s receipt of QDRO distribution on behalf of the community means she should not be taxed on the portion that at all times belonged to H; Tax Ct. looked to terms of settlement, rather than QDRO, to determine amount of distribution taxable to W.
  • C/P interest in IRAs disregarded for tax purposes; H taxed when he withdrew funds from IRA to pay W her share.
  • Alternate payee is a "distributee" of plan benefits distributed to her, even though initially all paid to H.
  • No rollover permitted where W deposited H's profit sharing distribution into her IRA; subsequent judgment not a QDRO.
  • W's gross income included all stock received in distribution pursuant QDRO where she failed prove too many shares distributed in error and she did not deposit into IRA.
  • Lump-sum distribution to attorney's trust account and subsequent division by stipulation between H and W is not pursuant to QDRO and is all taxable to employee without regard to c/p laws.
  • Lump-sum distribution rolled directly into IRA of spouse is subject to immediate taxation.
  • If decree specifically provides for alimony, payments made pursuant to pension division are deemed to be designated as not includable in gross income of recipient.
  • W, who receives all c/p military retirement benefits in MSA, is taxed on her share as pension income and H's share as alimony.
  • Non-qual. plan payments specifically awarded to H were includable in his gross income for taxable years in which such amounts paid or made available to H.
  • Int.Rev. Code §457 plans not subject to IRA roll over or lump sum distributions.
  • H may surrender tax-sheltered annuities, roll them over into IRAs in his name, then transfer IRAs to W as part of divorce, without triggering a taxable event.
  • Monies which W receives directly from H's pension plan to equalize division of property not taxable to her.


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