Senior divorce IRA RMD
My clients are in the process of obtaining a divorce which will be completed in mid 2022. Only the husband has an IRA and his IRA RMD is around $150,000. They plan on splitting the IRA as a part of the divorce. How can they avoid the husband being 100% taxed on the IRA RMD in 2022? They are planning on taking the draw in January 2022?
Many thanks as always
Permalink Submitted by Alan - IRA critic on Tue, 2021-11-09 00:32
Husband will still be responsible for taking the entire RMD and the paying the tax on the RMD despite the transfer of half the account. Perhaps some divorce attorneys know how best to reflect this in the terms of the divorce, such as having the RMD completed before the transfer and having a tax adjusted portion of the RMD transferred in addition to 50% of the remaining IRA balance.