Splitting an IRA due to divorce?
I have a couple that is going through a divorce. They want to split assets equally and the husband wants to give 50% of his IRA to the wife. Is there a tax efficient way that this can be done? Under an ERISA retirement plan, this can be accomplished through a QDRO. Is there any way this can be accomplished with IRA’s?
Permalink Submitted by Jose Morales on Wed, 2014-05-07 18:18
When dealing with an IRA, this is called a Transfer Incident to Divorce and requires the transfer to be part of a divorce decree or divorce order issued by the court. The husband cannot direct that the funds in his IRA be transferred to the soon to be former spouse on his own.