Withdrawals from IRA incident to divorce
Hello, if someone takes a one-time early withdrawal from an IRA that s/he receives incident to divorce (transferred from former spouse), will the person be subject to the 10% penalty? Thanks,
Hello, if someone takes a one-time early withdrawal from an IRA that s/he receives incident to divorce (transferred from former spouse), will the person be subject to the 10% penalty? Thanks,
Permalink Submitted by Alan Spross on Thu, 2012-09-27 19:33
Yes, unless the person has a non divorce related penalty exception. The penalty exception for a QDRO distribution from an employer plan does NOT apply to IRA accounts.
Permalink Submitted by Francisco Laguna on Thu, 2012-09-27 19:42
Thank you,