The 1040 can be an excellent source of information for finding assets in divorce.
The first place you should look is Box 12. Box 12 will tell you if there is a 401k, a Roth IRA, an executive compensation account including stock options or restricted stock and even a deferred compensation account. Below, I’ve listed codes and definitions that can be very important in divorce.
- Boxes D, E, F, G, S, and H: These codes provide information about your contributions to retirement plans at work. They are for your information only:
o D:401(k) plan
o E:403(b) plan
o F:408(k)(6) plan
o G:457(b) plan
o S:408(p) salary reduction SIMPLE retirement account
o H:501(c)(18)(D) plan
- Box K: Excise tax for excess golden parachute payments. If you have this code on your W-2, you cannot file a Form 1040EZ.
- Box L: Your employer reimbursed you for employee business expenses that you paid out of your own pocket and the amount you received as a reimbursement is greater than the amount you actually spent.
- Box R: Your employer made contributions to an Archer MSA (medical savings account) for you. If you have to pay tax on any of the contributions, the amount is already included in Box 1 of your W-2. If you have this code on your W-2, you cannot file a Form 1040EZ.
- Box V: Your income from the exercise of non-statutory stock options. This amount is included in Box 1 of your W-2. This can be a big one. Be sure to follow up and get statements on that account.
- Box W: Employer contributions (including amounts the employee elected to contribute using a section 125 (cafeteria) plan) to your health savings account. Reported on Form 8889, Health Savings Accounts (HSAs).
- Box Y: Deferrals under section 409(A) on a nonqualified deferred compensation plan.
- Box Z: Income under section 409(A) on a nonqualified deferred compensation plan. This amount is also included in Box 1.
- Box AA: Designated Roth contributions under a section 401(k) plan.
- Box BB: Designated Roth contributions under a section 403(b) plan.
- Box EE: Designated Roth contributions under governmental section 457(b) plan. This amount does not apply to contributions under a tax-exempt organization section 457(b) plan.
If you see any information within these codes, it’s very likely that there is more information to be gathered. And it can get very complicated. This is the type of thing that a Certified Divorce Financial Analyst specializes in. As a CDFA, I can help you ensure that all your bases are covered. Contact us at Wiser Divorce Solutions or give us a call at 702-835-6960.