Levine, Jacobs & Company, LLC, Member Offers Advice On Possible Tax Consequences During Divorce
Michael H. Karu, CPA/CFF, quoted on NJ.com regarding tax consequences.
- Newark, NJ (1888PressRelease) May 19, 2021 - Michael H. Karu, CPA/CFF, senior member, Levine, Jacobs & Company, LLC., was highlighted on NJ.com where he answered the question, “Can I get a check as part of a divorce exemption on taxes or can my wife do a direct rollover into my IRA and then I could withdraw the money to use for a down payment without incurring the 10 percent penalty and income taxes?”
According to Karu, “By accepting money from your wife’s 401(k) in exchange for your share of the house, you are turning a tax-free asset and probably tax-free income on the sale into a taxable asset."
Karu advised to work carefully with an attorney and a tax expert to ensure full understanding of the consequences of what may happen with the divorce settlement.
“While the transfer — assuming they use a properly executed Qualified Domestic Relations Order (QDRO) — will not be taxable, the withdrawal will be,” Karu stated. “That is regardless of whether it’s withdrawn from the 401(k) or rolled into an IRA and then withdrawn.”
To read the article, please click here.
To speak with and/or set up an interview with Michael Karu, please contact Amy Delman, Amy Delman Public Relations, LLC, 201.563.4614 or amydelmanpr ( @ ) verizon dot net dot
Michael H. Karu, CPA/CFF, is the senior member of Levine, Jacobs & Company, LLC, a Livingston-based accounting and consulting firm. He is qualified by the Superior Court of New Jersey, Family Part, as an expert witness and as an authority on business valuations, specifically for closely held or family-owned businesses. Additionally, he is a Certified Divorce Mediator and is Certified in Financial Forensics.
Karu received his B.S. degree in Business Administration from The Ohio State University and holds professional memberships in the American Institute of Certified Public Accountants, the AICPA Tax Division and the AICPA Business Valuation, Forensics and Litigation Services Section, as well as the NJ State Society of CPAs. Karu is a published author of numerous articles seen in trade and consumer publications and has been a guest on radio and television shows.
Levine, Jacobs & Company, L.L.C. maintains memberships in the American Institute of Certified Public Accountants and the New Jersey Society of Certified Public Accountants. The firm prides itself on its teamwork abilities where “every account receives the talent and expertise of the whole firm.”
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