QDRO OR TRANSFER
I have a client going through a divorce she has an IRA with our firm and I received a letter from the attorney that they have agreed to split the IRA. They have indicated that it should be done as a QDRO I think we should transfer it to the ex name under his IRA account.
Permalink Submitted by Alan - IRA critic on Thu, 2013-12-19 17:06
QDROs apply to qualified plans, not to IRA accounts. IRA accounts are transferred according to provisions in a divorce or separate maintenance decree or written document related to such decree. The document is given to the IRA custodian who will then do a non reportable tax free trustee transfer of the required share to the receiving spouse. Any IRA basis should be split in proportion.