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What are the tax implications when distributing a pension or retirement account?

April 26, 2017account distributing implications Pension retirement tax

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What are the tax implications when distributing a pension or retirement account?

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If the distribution is made pursuant to a QDRO, there are no tax implications. The money is merely shifted from one spouse to another. However, if the spouse withdraws the money then he or she will be taxed and penalized per IRS regulations.