Roth distribution rules in a divorce
If a ROTH IRA is split in a divorce and the x-husband has met the 5 year holding period for the earnings but the receiving x-wife does not, does the 5 year clock carry over to the x-wife or does it start over since the x-wife had never had a roth before receiving these assets.
Permalink Submitted by Alan - IRA critic on Thu, 2016-05-12 19:11
While there is no on point guidance on this, the portion of the Roth received is a pro rated share of the original Roth which received the first contribution of the original owner. Therefore, I believe that the 5 year holding period began with the original contribution.