	AllExperts > Experts
	Search

About Helen P. O`Planick, EA
Expertise
I am a tax professional, with experience in individual taxation. I would prefer not to answer questions about non-resident aliens or corporate taxation. Please do not ask me state related questions, unless the state is Pennsylvania. There are 42 taxing states and 42 TOTALLY different sets of state tax law.

Experience
I have been preparing tax returns almost all my life. I have been in professional practice for 25 years and I am enrolled to practice before the Internal Revenue Service.

Organizations
National Association of Enrolled Agents

Publications
I am a prior Money Magazine Tax Test taker and have been quoted extensively in all media including monthly periodicals and books by tax authorities.

You are here: Experts > Business > Corporate Law > Tax Law (Questions About Taxes) > cash settlement

Topic: Tax Law (Questions About Taxes)

Expert: Helen P. O`Planick, EA
Date: 9/11/2008
Subject: cash settlement

Question
My lawyer has drafted a divorce settlement with my wife that is for $400K ($200k cash and $200k from my IRA). My wife prefers all cash. If I have income this year >$400k to offset the cash settlement would it be better for me, from a tax position, to send her all cash and keep the IRA money?

Answer
It really does not matter. Once the IRA is hers (you release it to her thru a QDRO), if she cashes it out, she will pay the tax and perhaps the penalty.

And you get no deduction for it either way. The only thing you will lose out on is the appreciation in the IRA (but right now, the way the market is - that is not even a real issue).

Helen, EA in PA

Add to this Answer Ask a Question

About Us | Advertise on This Site | User Agreement | Privacy Policy | Help
Copyright © 2008 About, Inc. About and About.com are registered trademarks of About, Inc. The About logo is a trademark of About, Inc. All rights reserved.