alimony is taxable child support is not... no matter where it comes from.
I am not sure about your settlement BBJ. He owes you... he is choosing to take it from his 401K, he should be liable for all the taxes incurred. But shoulda woulda coulda... you better talk to a tax professional about it.
Me 54 DS19 and DS17 Married 06/1989 Divorced 01/2011