Inherited IRA…and a divorce
Hello – any help with the following scenario is appreciated:
An IRA is inherited from a deceased parent (original account owner) and is being stretched. The beneficiary who inherited the IRA is involved in a divorce.
Is it possible to split the IRA inherited from the parent as part of a court decree so it is not a tax liability to the one losing a portion of the Inherited IRA?
I know there are a lot of specific limitations when it comes to inherited IRAs.
Many thanks!
Permalink Submitted by Al Fry on Wed, 2008-07-02 20:05
If it was from my parent, I would want to keep it, and give her other property. Just my opinion, not an answer.
Permalink Submitted by Alan Spross on Wed, 2008-07-02 21:03
If it is legal in your state to transfer your interest in an inherited IRA to your ex, then the appropriate share would be re titled in their name, but this would not change the RMD requirement. Distributions would be taxable to your ex in that situation. Again, unless it is transferred by court order, any distributions taken would remain taxable to you.
In a divorce action, competent counsel would always consider the post tax implications of any settlement.