Client in jail
Client is in jail. He is married in a community property state. Justice dept wants restitution from his IRA. All financial assets are in the IRA. Justice wants to leave innocent wife with money to live on. Is there any way to split the IRA other than divorce and/or death?
Thanks, Leslie
Permalink Submitted by mk foss on Thu, 2014-06-26 17:59
There is no way to voluntarily split the IRA other than divorce or death. The IRS can levy an IRA and retrieve funds that way. I’m not sure if the statute is written broadly enough to allow another federal agency to withdraw funds for the benefit of the owner’s spouse.