RMD on Rollover Granted from Divorce Decree

Submitted by Karen Elise Kilbride on Mon, 2014-03-24 19:48

My client received rollover money from three sources, 2 IRA’s and one 401K from divorce settlement.

The divorce settlement was 10/25/13 but assets were not received in my clients IRA account from all three sources until January 2014.

My client was 70.5 in 2013. Money not received until January 2014 but is he still responsible for RMD for 2013 because divorce settlement was dated 10/25/13?

Thank you



Submitted by Keith Toussaint on Mon, 2014-03-24 19:58

Because he turned 70.5 in 2013 he must take his RMD by 4/1/2014.

Submitted by Alan - IRA critic on Mon, 2014-03-24 20:40

Client had no interest in these accounts on 12/31/2012, therefore client is not responsible for a 2013 RMD, but other spouse might be.  However, even though the rollovers were not received until 2014, the client effectively owned the assets as of 10/25/2013, and there will be an RMD due for 2014 by 12/31/2014.

Add new comment

Log in or register to post comments