Divorce settlement

Subject to all applicable requirements and limitations, payments made pursuant to a divorce settlement or decree that arise from one of the qualifying pension and annuity sources listed above may qualify for the subtraction. The divorce settlement or decree must expressly state the amount of the pension or annuity benefit allocated to the taxpayer for the taxpayer to claim the subtraction. A nonperiodic payment representing a future stream of periodic payments from a pension or annuity plan made pursuant to the divorce settlement or decree will not qualify for the subtraction, unless the pension or annuity plan benefit is from:

an individual retirement arrangement (IRAs);

self-employed retirement accounts;

fully-matured, privately purchased annuities;

Social Security benefits; or

amounts paid by reason of permanent disability or death of the person entitled to receive the benefits.