IRA distribution
Participant receives distribution from a qualified plan and rolls into an IRA. Attorneys did not prepare a QDRO but participant agreed to give half to ex-wife. Can he transfer spouse’s portion to her IRA and distribution not be subject to tax? He will receive a 1099R for the full amount of the distribution.
Permalink Submitted by Peter Lingane on Tue, 2011-06-28 19:03
No. Since the employer plan has been transferred to an IRA, we are talking about dividing an IRA incident to a divorce. While a full fledged QDRO is not required (see Pub 590 p. 28) when dividing an IRA incident to a divorce, you still need a written order. Ask your attorney whether it is possible to amend the divorce decree to include division of the IRA.