Taxes

• Income Tax
  2. Retain the distribution with the current plan, if allowed, in your name as an alternate payee. There are no time limits. As long as the account remains titled as an “alternate payee” account, a subsequent distribution can avoid penalty taxes. All distributions are taxable at ordinary income tax rates but not at the 10% Federal premature distribution penalty and the State of Wisconsin’s 3.3% premature distribution penalty (prior to a distribution before age 59 1/2). The plan is required to withhold Federal tax at 20%. This is the same as having Federal income tax withheld from your paycheck. If you are in a higher tax bracket, you may still owe Federal tax on your distribution where someone in a lower bracket might get a refund. State taxes apply if you live in a state that has income tax. Most plans will not withhold state tax unless specifically requested. Plans are required to allow one single premature distribution and then most plans convert the account to an IRA. Once converted, you lose access to the funds without premature penalty. You will have all the same investment choices as the participant and be allowed to transfer and arrange your investment accounts.

Accounting

• Accounting Services

Planning

• Financial Planning
  No. If your question requires additional work on our part or additional discovery work, we will notify you up front of any additional charges. Examples of services we provide that could incur additional fees include, but are not limited to, providing assistance regarding when you may be eligible to collect a benefit, take receipt of the benefits, or providing assistance with paperwork to take a distribution or rollover funds to an IRA. We have qualified staff available for such services. We do not provide financial planning services or investment advice.
• Retirement Planning
  Separation or divorce often involves a significant change in the economic future of your client. Often the parties to a divorce are participants in pension plans that provide retirement benefits either in the form of a lump-sum payment upon retirement or a monthly benefit. Attorneys are often faced with the prospects of having the value of the pension offset against other assets of the marriage or having the plan divided by way of a QDRO.
• Asset Management
  Prior to founding Divorce Financial Solutions, LLC, he was CEO and founder of WFA Asset Management, a group of companies and one of Midwest’s largest fee-only wealth advisory firms, with over $150 million under management in 2005. The WFA group of companies included subsidiaries in forensic economics, business tax and accounting, fee-only financial planning, estate planning, divorce planning, income taxes and risk analysis.