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11-08-2012, 08:14 PM
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#1
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No Lifer
Join Date: Feb 2001
Location: Corner of EPIC and ÅWESOME ST.
Posts: 69,940
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401K and taxes for Green Card holder permanently leaving the country.
My wife and I are divorcing. She has a 401K. What is the tax situation on if she leaves the country permanently and wants to take it out?
This would happen after 12/31/12.
I don't want to be stuck with a tax burden on it for 2013.
__________________
Re-becoming monster.
12/23/12 196lbs 01/28/13 188lbs
10/08/12 215lbs 11/09/12 204lbs
08/05/12 237lbs 09/24/12 225lbs
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11-08-2012, 08:16 PM
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#2
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Diamond Member
Join Date: Sep 2003
Posts: 6,907
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This space for rent.
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11-08-2012, 08:16 PM
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#3
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Lifer
Join Date: Sep 2005
Location: North of Tonto, ON
Posts: 46,477
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why would you be liable for tax burden if you are divorced?
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11-08-2012, 08:23 PM
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#4
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Lifer
Join Date: Aug 2008
Location: Earth
Posts: 19,979
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Quote:
Originally Posted by paulney
This space for rent.
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Got to love the free market at work. 
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11-08-2012, 08:25 PM
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#5
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No Lifer
Join Date: Feb 2001
Location: Corner of EPIC and ÅWESOME ST.
Posts: 69,940
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Quote:
Originally Posted by sdifox
why would you be liable for tax burden if you are divorced?
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I don't know, but I don't want to be somehow whether by lien on our home (she was on the deed, not the note) or her car I am going to sell.
She's going to have to take the tax affidavit to be allowed to permanently leave (many just skip this step and move out), but she doesn't know if she will ever end up back in the USA. I doubt she will, but she worries about EVERYTHING.
If everything works out well, I am going to let her just keep that 401k intact (it's only $6500 right now) and just pay from the proceeds from our liquidations.
__________________
Re-becoming monster.
12/23/12 196lbs 01/28/13 188lbs
10/08/12 215lbs 11/09/12 204lbs
08/05/12 237lbs 09/24/12 225lbs
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11-08-2012, 08:39 PM
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#6
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Administrator
Discussion Club Moderator
Elite Member
Join Date: Oct 2000
Posts: 39,821
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401K is through her employer. Is she quitting? Best thing to do is set het up an IRA in her name only.
Roll over the 401K into the IRA. Now it is her headache alone if she chooses to liquidate. If you file a joint return for 2012 the 401K shows up and is offset by the IRA rollover. Make sure that conversion is done before end of year. Then the following year, ensure no ties into her financially. Her income is hers. The divorce needs to be finalized before the IRA gets liquidated. Otherwise you can be liable.
__________________
F15 Air Superiority Fighter - Never has one been lost in aerial combat (104 kills)
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11-08-2012, 08:45 PM
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#7
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No Lifer
Join Date: Feb 2001
Location: Corner of EPIC and ÅWESOME ST.
Posts: 69,940
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She will be quitting. She'd like to work until she leaves in Feb or so though.
__________________
Re-becoming monster.
12/23/12 196lbs 01/28/13 188lbs
10/08/12 215lbs 11/09/12 204lbs
08/05/12 237lbs 09/24/12 225lbs
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11-08-2012, 08:47 PM
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#8
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Diamond Member
Join Date: Feb 2001
Posts: 5,758
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Here we go again ...
Can we assume that you (no pun intended) are filing married filing jointly?
If the answer is yes AND she withdraws funds before you divorce my GUESS is that yes, you (jointly) will be responsible for a bunch-o-taxes ... unless you can convince her to wait until after the legal divorce.
I can't wait to see where this thread goes ...
__________________
The mind is its own place, and in itself can make a heaven of hell, a hell of heaven.
First the parents take care of the children ... then the children take care of the parents.
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11-08-2012, 08:48 PM
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#9
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No Lifer
Join Date: Dec 2000
Location: Northern IL
Posts: 58,320
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Quote:
Originally Posted by dud
Here we go again ...
Can we assume that you (no pun intended) are filing married filing jointly?
If the answer is yes AND she withdraws funds before you divorce my GUESS is that yes, you (jointly) will be responsible for a bunch-o-taxes ... unless you can convince her to wait until after the legal divorce.
I can't wait to see where this thread goes ...
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yeap.
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Zombie Crew member! I WILL SURVIVE!
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11-08-2012, 08:51 PM
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#10
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Diamond Member
Join Date: Nov 2002
Posts: 5,332
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republican meltdown?
__________________
Have you not been in OT in the past two years?
He thinks he's the master of the universe. - Shortylickens
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11-08-2012, 09:00 PM
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#11
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No Lifer
Join Date: Feb 2001
Location: Corner of EPIC and ÅWESOME ST.
Posts: 69,940
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lol, at the fucking retard and hillbilly that think I am just lying here.
Your time is coming soon. 
__________________
Re-becoming monster.
12/23/12 196lbs 01/28/13 188lbs
10/08/12 215lbs 11/09/12 204lbs
08/05/12 237lbs 09/24/12 225lbs
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11-08-2012, 09:00 PM
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#12
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Lifer
Join Date: Aug 2008
Location: Earth
Posts: 19,979
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Quote:
Originally Posted by zanejohnson
republican meltdown?
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It's alky we are talking about.
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11-08-2012, 09:02 PM
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#13
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No Lifer
Join Date: Dec 2000
Location: Northern IL
Posts: 58,320
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Quote:
Originally Posted by alkemyst
lol, at the fucking retard and hillbilly that think I am just lying here.
Your time is coming soon. |
who thinks you are lying? considering how much you cheat on her its no shock. most likely the best for both of you.
as for for the tax's you guys are married. you will end up shareing the tax burden. shrug
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Zombie Crew member! I WILL SURVIVE!
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11-08-2012, 09:08 PM
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#14
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Diamond Member
Join Date: Sep 2005
Posts: 7,266
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you're going to upset the kids
__________________
Sushi is good
Quote:
Originally Posted by brianmanahan
smoblikat you fool, you fell victim to one of the classic blunders! the most famous of which is "never post your actual pay in an ATOT brag thread", but only slightly less well known is this: "never post your actual pay when alkemyst is online!!" hahahahaha
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11-08-2012, 09:09 PM
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#15
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Diamond Member
Join Date: Oct 1999
Posts: 3,231
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Quote:
Originally Posted by Newbian
It's alky we are talking about.
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He voted "Bro" in the last election.
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11-08-2012, 09:12 PM
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#16
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Diamond Member
Join Date: Sep 2003
Posts: 6,907
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The question is... what will happen to the M3?
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11-13-2012, 09:08 PM
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#17
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Lifer
Join Date: Nov 2000
Posts: 12,160
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Quote:
Originally Posted by EagleKeeper
401K is through her employer. Is she quitting? Best thing to do is set het up an IRA in her name only.
Roll over the 401K into the IRA. Now it is her headache alone if she chooses to liquidate. If you file a joint return for 2012 the 401K shows up and is offset by the IRA rollover. Make sure that conversion is done before end of year. Then the following year, ensure no ties into her financially. Her income is hers. The divorce needs to be finalized before the IRA gets liquidated. Otherwise you can be liable.
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This sounds like the answer.
Also, how bad can half of the tax burden on $6,500 be?
__________________
Harvey -
And Whos's Watching Over Who's Watching Over You?
Tell me, who's telling who's telling you what to do what to do?
"Everything secret degenerates, even the administration of justice; nothing is safe that does not show how it can bear discussion and publicity." –Lord Acton
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11-13-2012, 09:37 PM
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#18
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Diamond Member
Join Date: Feb 2011
Posts: 9,296
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Quote:
Originally Posted by Turin39789
This sounds like the answer.
Also, how bad can half of the tax burden on $6,500 be?
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It can't be bad.
Is it unreasonable to just have her clear it out now, pay the 10% penalty on that, and then consider the remaining $5850 as income for this year? I assume she wants the money. I have no tax experience, just throwing it out there.
__________________
DCal430's wisdom on gun laws
If the children or other family members will have access to the gun then they should be interrogated too.
We can also use teachers to enforce these rules, they can ask their students to be honest and if mommy and daddy are in violation of these rules.
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