Client divorced on4/15/2020 took total 401 K distribution of $146521.32 and gave x spouse $85000. How do I show in Proseries Basis? I realize there is no penalty but how do I show it on return for the $85000.
You don't if the full distribution was in your client's name. They have something called QDRO where the spouse gets part of the distribution directly. If someone's lawyer didn't go that route, your client should find another lawyer for their next divorce.
AND consider contacting said attorney (if no QDRO done...) to discuss his/her E & O insurance.
If a post answers your question, click on *Accept as solution* for future searches
The error happens often in an amicable divorce, where everything goes wrong because of no guidance.
"Level Up" is a gaming function, not a real life function.