QDRO
Our divorced client will receive QDRO 401(k) from her ex. Can she roll it over into her IRA or is the money supposed to go to a regular taxable account only?
Our divorced client will receive QDRO 401(k) from her ex. Can she roll it over into her IRA or is the money supposed to go to a regular taxable account only?
Permalink Submitted by Alan Spross on Tue, 2007-09-11 23:22
She can roll it over only when the plan allows her to. Note that if the balance is rolled to her own IRA, distributions prior to age 59.5 are subject to penalty unless she sets up a 72t plan, is disabled or meets another exception.
However, if the plan allows her to take direct contributions from her portion of the 401k, there is NO early distribution penalty. Therefore, she should check with the plan administrator to determine what her options are prior to acting.