IRA-Divorce Decree-QDRO
Scenario: A divorced individual is considering a distribution from his IRA to settle with his ex-wife. The divorce decree has been in place for several years now. The particular IRA in question has been funded solely with individual assets, no employer sponsored money. I have a few questions:
1. Can a QDRO be issued by a judge after the divorce is already final?
2. Can a QDRO apply to something other than an employer sponsored plan? (In this case a 100% individual funded IRA)
3. Are there any ways to satisfy a divorce decree with IRA money such that it does not count as a distrbition, causing the IRA owner to have to pay taxes and penalties?
Permalink Submitted by Jose Morales on Wed, 2010-08-04 21:06
A QDRO would not apply to the division of IRA assets after a divorce. The divorce decree or transfer incident to divorce should clearly state that the funds are to be transferred into the spouse’s IRA account. Here is one of many articles that covers this topic in more depth: http://www.cpa2biz.com/Content/media/PRODUCER_CONTENT/Newsletters/Articl…