NJSBA Family Law Section

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  • 1.  Alimony tax change - crazy idea or possible?

    Posted 12-04-2018 12:22 PM
    Parties file a QDRO every six months transferring a certain amount from Husband's (deposited pre-tax) 401k to Wife's 401k (assume no need to pay to re-do the QDRO every 6 months, just using template from last transfer).

    Wife withdraws the funds, paying taxes at her rate. Parties are over 59 1/2, so no 10% penalty.



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    David Perry Davis, Esq.
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  • 2.  RE: Alimony tax change - crazy idea or possible?

    Posted 12-04-2018 12:45 PM

    Response from Lois Fried, CPA, is below. Appears to be a not-crazy idea at all. It apparently could be expanded on to provide for regular payments, depending on the plan.

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    David Perry Davis, Esq.
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    www.FamilyLawNJ.pro
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    Hopewell, NJ 08525
    Voice: 609-466-1222
    Fax: 609-466-1223






  • 3.  RE: Alimony tax change - crazy idea or possible?

    Posted 12-04-2018 12:54 PM

    I posted this basic concept yesterday in my blog and on Facebook in the NJ family Law Attorneys group. I assume you read it.

     

    Robert E. Goldstein, Esq.
    Drescher & Cheslow, P.A.

    610 Bridge Plaza Drive

    Manalapan, NJ 07726

    (732) 972-1600
    Fax (732) 972-0038
    E-mail: [email protected]

     

    Visit my personal website:  www.mydivorcelawyernj.com

    Member, Middlesex County Bar Association,  Monmouth Bar Association, New Jersey Association for Justice and New Jersey State Bar Association

                                      

     

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  • 4.  RE: Alimony tax change - crazy idea or possible?

    Posted 12-04-2018 01:34 PM

    Yes, read it and thought about it and expanded on it, but -- credit to Bob for the basic idea!  (And to Lois Fried for expanding it further).


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    David Perry Davis, Esq.
    ----------------------------------------------------
    www.FamilyLawNJ.pro
    ----------------------------------------------------
    57 Hamilton Avenue -- Suite 301
    Hopewell, NJ 08525
    Voice: 609-466-1222
    Fax: 609-466-1223






  • 5.  RE: Alimony tax change - crazy idea or possible?

    Posted 12-04-2018 04:08 PM

    I don't deserve full credit as I read about this in Investopedia online. But I thought it was worth making us aware of it, so kudos to David for disseminating it further.

     

    By the way, I did not see Lois' response.

     

    Robert E. Goldstein, Esq.
    Drescher & Cheslow, P.A.

    610 Bridge Plaza Drive

    Manalapan, NJ 07726

    (732) 972-1600
    Fax (732) 972-0038
    E-mail: [email protected]

     

    Visit my personal website:  www.mydivorcelawyernj.com

    Member, Middlesex County Bar Association,  Monmouth Bar Association, New Jersey Association for Justice and New Jersey State Bar Association

                                      

     

    IRS Circular 230 Notice: To ensure compliance with certain regulations promulgated by the U.S. Internal Revenue Service, we inform you that any federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of (1) avoiding tax-related penalties under the U.S. Internal Revenue Code, or (2) promoting, marketing or recommending to another party any tax-related matters addressed herein, unless expressly stated otherwise.

    This E-Mail message and any documents accompanying this E-Mail transmission contain information from the law firm of Drescher & Cheslow, P.A. which is "Privileged and confidential attorney-client communication and/or work product of counsel." If you are not the intended recipient, you are hereby notified that any disclosure, copying, distribution and/or the taking of or refraining from taking of any action in reliance on the contents of this E-Mail information is strictly prohibited and may result in legal action being instituted against you. Please reply to the sender advising of the error in transmission and delete the message and any accompanying documents from your system immediately. Thank you

     






  • 6.  RE: Alimony tax change - crazy idea or possible?

    Posted 12-04-2018 04:12 PM

    I was unaware of the FB group, does anyone know the exact title?

     

    Crystal M. Ullrich, Esq.

    Weinberger Divorce and Family Law Group, L.L.C.

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  • 7.  RE: Alimony tax change - crazy idea or possible?

    Posted 12-04-2018 06:58 PM
    Crystal -
    <x-tab>        </x-tab>Here's a link to the FB group: https://www.facebook.com/groups/291007804621950

    <x-tab>        </x-tab>Be advised - it's a little less (or a lot less) formal than this group as far as what's discussed, occasional vents, etc.



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    David Perry Davis, Esq.
    ----------------------------------------------------
    www.FamilyLawNJ.pro
    ----------------------------------------------------
    57 Hamilton Avenue -- Suite 301
    Hopewell, NJ 08525
    Voice: 609-466-1222
    Fax: 609-466-1223






  • 8.  RE: Alimony tax change - crazy idea or possible?

    Posted 12-04-2018 01:42 PM

    Yes. I don't always respond publicly.

     

    IRS regulations are far more controlling and one bright line is alimony.......so if it walks like a duck, they'll tax it.

     

    Best Regards,

     

    David C. Bendush, Esq.

    310 Springfield Ave., Suite 10

    Berkeley Heights, N.J. 07922

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